Intergovernmental Relations Committee
April 26, 2023

Legislative Tracking IRC Position
Bill Sponsor Brief Description
e-bikes SB 381 Min Supported in Feb. '23
Conduct a study on electric bicycles to inform efforts to improve safety, just passed the Senate Appropriations Committee and is now headed to the Senate Floor.

The City of Laguna Beach is the sponsor of the bill and the City of Huntington Beach has also supported.

It will help fill in the information gap we have about E-Bike safety and inform future legislation. 4/18/23- 3rd reading in Senate committee. No opposition recieved.

Outdoor Advertising AB1175 Quirk-Silva Outdoor advertising displays: redevelopment agency project areas. 3/15/23- Re-referred to Committee on GO
SB 222 Nguyen Outdoor advertising: applications.
4/25/23- Hearing in Senate Transportation Committee
SLA AB 480 Ting / Umberg CALED - a bill permanently expanding the reach of the SLA to include review of leases and all but eliminating the use of the Economic Opportunity Law for cities and counties.
a retread of a prior bill that tried to expand the Surplus Lands Act that was stopped last year (AB 2357 Ting). permanently expanding the reach of the SLA to include review of leases and all but eliminating the use of the Economic Opportutnity Law for cities and counties
4/26/23 - Hearing in Comm. Housing & Community Development SB 747 Caballero CALED - the only bill that creates much-need efficiencies in SLA and upholds the Ecomonic Opportunity Act to further economic development
preserves ecomonic opportunity law
4/24/23- Housing hearing
Housing AB 1035 Muratsuchi Rent caps in mobile home parks. 4/10/23- amended, no hearing set
AB 68 Ward streamlined housing approvals: density, subdivision and utility approvals looks like a “climate” bill with a goal to keep housing away from high fire hazard and flood areas but the details of it would potentially affect HB because much of the city is considered TCAC high resource. 4/12/23- HCD, no hearing set
AB 1287 Alvarez Proposes to exempt density bonus projects from the Coastal Act and make other changes to the percentage of affordable housing units by income category.
4/24/23 - natural resources hearing set
AB 1485 Haney / Wiener (n) Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section, and shall be permitted to intervene as a matter of unconditional right, under subparagraph (A) of paragraph (1) of subdivision (d) of Section 387 of the Code of Civil Procedure, in any legal action addressing a violation of any law set forth in subdivision (j). section.
5/3/23 - Appropriations hearing
SB 4 Weiner Planning and zoning: housing development: higher education institutions and religious institutions. 4/26/23 - Gov and Finance hearing
SB 272 Laird Proposes local governments in the coastal zone to have an approved SLR adaptation plan for critical infrastructure by 1/1/34. 4/26/23 - Gov and finance hearing
Intergovernmental Relations Committee
April 26, 2023

Legislative Tracking IRC Position
Bill Sponsor Brief Description
Intergovernmental Relations Committee
April 26, 2023
SB 423 Weiner Land use: streamlined housing approvals: multifamily housing developments.

Changes include getting rid of the sunset date and including language that Building and Fire Codes can’t be utilized as “objective standards” by which to deny a project. As a side note, the City utilized a HB Fire Specification to deny two SB 35 applications that were submitted. We indicated that because the applications did not meet this objective standard, the applications were not eligible for SB 35. If this bill passes, we would be precluded from making such a conclusion in the future. 4/26/23 - Gov and Finance hearing
Public Retirement
System
SB 252 Gonzalez Public retirement systems: fossil fuels: divestment This bill prohibits the Board of the Public Employees’ Retirement System (PERS) and the Teachers’ Retirement Board of the State Teachers’ Retirement System (STRS) from making any additional or new investments or renewing existing investments of public employee retirement funds in a fossil fuel company, and requires PERS and STRS to liquidate investments in a fossil fuel company on or before July 1, 2031, as provided.
4/19/23 - referred to Apprpriations
AMENDED IN SENATE MARCH 14, 2023
SENATE BILL No. 381
Introduced by Senator Min
February 9, 2023
An act to add and repeal Section 21214 of the Vehicle Code, relating to vehicles.
legislative counsel’s digest
SB 381, as amended, Min. Electric bicycles: study.

Existing law defines an electric bicycle to mean a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts, and subjects a person riding an electric bic ycle to pro visions of la w governing the operation of a bicycle.

This bill w ould require the Mineta Transportation Institute at San Jose State Uni versity Univer sity, in consultation with r elevant stakeholders, to, on or before January 1, 2026, conduct a study on electric bicycles to inform ef forts to improve the safety of riders and pedestrians, users of the transportation system, and to submit a report of the findings from the study to the Legislature. The bill would require the study to e xamine or compile, e xamine, identify , and analyze available information regarding, among other things, data on injuries, accidents, crashes, emergency room visits, and deaths related to bicycles and electronic electric bicycles and data on best practices for safety of regular bicycles versus electric bic ycles. best pr actices for policy to promote safe use of electric bicycles.

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​

98 The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares both all of the line 2 following:
line 3 (a)  Electric bicycles not only offer a solution to car dependency line 4 and transport poverty, but also help reduce our carbon footprint. line 5 As California moves away from its dependence on fossil fuels, we line 6 will see a rise in zero emission modes of transportation, including, line 7 but limited to, electric bicycles.
line 8 (b)  While the uptake in usage of electric bic ycles is necessary line 9 to meet our climate goals, it is important to ensure rider and line 10 pedestrian safety. Research sho ws the safety of electric bicycle line 11 riders themselves, as well as the safety of other r oad user s. line 12 Research sug gests that accidents with an electric bic ycle ha ve line 13 more severe consequences than with a regular bicycle. Head trauma line 14 is significantly higher, although a helmet is much more frequently line 15 used. The main culprit can have se vere consequences, including line 16 head trauma. A key factor behind these results, according to the line 17 experts, is the much could be the higher speed. line 18 (c)  It is the intent of the Le gislature to impr ove the safe line 19 movement and e xpand usa ge of electric bicycles as a net zer o line 20 transportation mode in the conte xt of California’ s e xisting line 21 multimodal transportation system.
line 22 (d)  It is the intent of the Le gislature to allow individuals the line 23 freedom to travel by transportation modes that reduce externalities, line 24 such as air pollution, climate c hange, traffic congestion, noise, line 25 and public health and safety impacts.
line 26 SEC. 2. Section 21214 is added to the Vehicle Code, to read:
line 27 21214. (a)  On or before January 1, 2026, the Mineta line 28 Transportation Institute at San Jose State University University, line 29 in consultation with relevant stakeholders, shall conduct a study line 30 on electric bicycles to inform efforts to improve the safety of riders line 31 and pedestrians, all users of the transportation system, and submit line 32 a report of the findings from the study to the Legislature. The study line 33 shall examine or compile examine, identify, and analyze available line 34 information, including, but not be limited to, all of the following:
line 35 following topics:
line 36 (1)  Data on injuries, accidents, crashes, emergency room visits, line 37 and deaths related to bicycles and electronic electric bicycles. 98 — 2 — SB 381

line 1 (2)  Data comparing the injury patterns between bic ycles and line 2 electric bicycles in California.
line 3 (3)  Data on best practices for safety of re gular bicycles versus line 4 electric bicycles.
line 5 (4)  Review of all laws in the code pertaining to electric bicycles. line 6 (5)  Recommended accessories, including, b ut not limited to, line 7 headlights, speedometers, brak es, bells, reflectors, and helmets, line 8 and how having these accessories help to provide safety. line 9 (2)  Factors and cir cumstances that ar e corr elated with the line 10 crashes of bicycles and electric bicycles.
line 11 (3)  Best pr actices for policy to pr omote safe use of electric line 12 bicycles.
line 13 (4)  Laws in other state vehicle codes pertaining to electric line 14 bicycles.
line 15 (5)  Data on the safety impacts from electric bicycle components line 16 and accessories including , b ut not limited to, headlights, line 17 speedometers, brakes, tires, bells, and reflectors. line 18 (6)  Data on the safety performance of electric bicycle batteries. line 19 (6)
line 20 (7)  Data on the manuf acturing of electric bic ycles, including, line 21 but not limited to, the mark et of electric bic ycles, manufacturer line 22 information, sales patterns, and the number of electric bicycles on line 23 California roads, including the usage by city and the reasons behind line 24 the usage.
line 25 (7)  Data on other countries with high electric bic ycles usage, line 26 including a re view of polic y mechanisms those countries use to line 27 regulate and promote the safe use of electric bic ycles and what line 28 California can learn from them.
line 29 (8)  Review of policies that other countries with high electric line 30 bicycle ridership use to promote the safe use of electric bicycles, line 31 including, but not limited to, cyclist and driver tr aining, street line 32 infrastructure policy, and insurance or licensing requirements. line 33 (9)  Recommendations for state policy to support expanded use line 34 of electric bicycles that protects the safety of riders and other road line 35 users, including, but not limited to, recommendations on whether line 36 there are needed revisions to the Vehicle Code, and improved data line 37 collection on electric bicycles.
line 38 (b)  (1)  A report to be submitted pursuant to subdi vision (a) line 39 shall be submitted in compliance with Section 9795 of the line 40 Government Code.
98 SB 381 — 3 —

line 1 (2)  Pursuant to Section 10231.5 of the Government Code, this line 2 section is repealed on January 1, 2030.

O
98 — 4 — SB 381

AMENDED IN ASSEMBLY APRIL 5, 2023
AMENDED IN ASSEMBLY MARCH 14, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 480
Introduced by Assembly Member Ting
(Principal coauthor: Senator Umberg)
February 7, 2023
An act to amend Sections 54221, 54222, 54222.5, 54223, 54224, 54225, 54227, and 54230.5 of, and to add Section 54221.5 to, the Government Code, relating to local government.
legislative counsel’s digest
AB 480, as amended, Ting. Surplus land.

Existing law prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospecti ve transferee, particularly that the local agency send a notice of a vailability to specified entities that have notified the Department of Housing and Community Development of their interest in surplus land, as specified. Under existing law, if the local agency receives a notice of interest, the local agenc y is required to engage in good faith negotiations with the entity desiring to purchase or lease the surplus land.

Existing law requires a local agency to take formal action in a regular public meeting to declare land is surplus and is not necessary for the agency’s use and to declare land as either “surplus land” or “e xempt surplus land,” as supported by written findings, before a local agenc y

97 may take any action to dispose of it consistent with an agency’s policies or procedures.

This bill would recast that provision and would authorize, exempt a local agency, in specified instances, that a local agency administratively declare land as from making a declaration at a public meeting for land that is “exempt surplus land” if the declaration and findings are the local agency identifies the land in a notice that is published and available for public comment at least 30 days before the declaration exemption takes effect. The bill w ould also require a local agenc y to pro vide a written notification to the Department of Housing and Community Development of its declaration and findings 30 days before disposing of land declared “exempt surplus land.” Because this bill would require local officials to perform additional duties, it w ould impose a state-mandated local program.

Existing law defines “exempt surplus land,” for which a local agency is not required to follow the requirements for disposal of surplus land, except as provided, as, among other things, surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, as specified.

This bill w ould require that those le gal restrictions be documented and v erified in writing by the rele vant agencies that ha ve authority relating to the restrictions.

Existing law specifies that, for purposes of these provisions, the term “exempt surplus land,” includes, among other things, surplus land that is put out to open, competitive bid by a local agency, as specified, for purposes of a mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25% of the residential units to lo wer income households with an affordable sales price or an affordable rent for a minimum of 55 years for rental housing and 45 years for ownership housing.

This bill would modify these provisions to require that the mixed-use development include not less than 300 residential units.

Existing law also defines exempt surplus land as, among other things, land that w as transferred by the state to a local agenc y, as specified, that includes residential units that are restricted to persons and families of low or moderate income with an af fordable sales price or rent, at least 80% of which shall be restricted to persons and families of lower income.
97 — 2 — AB 480

This bill would expand the definition of exempt surplus land to include land that is owned by a California public-use airport on which residential use is prohibited pursuant to specified federal law.

Existing law requires any local agency disposing of surplus land to send a written notice of availability of the property to specified entities.

Existing la w requires the Department of Housing and Community Development to maintain on its internet website a list of all notices of availability throughout the state.

This bill would require the department to also maintain on its internet website a list of all entities, including housing sponsors, that ha ve notified the department of their interest in surplus land for the purpose of developing low- and moderate-income housing. The bill would make other nonsubstantive changes to provisions that describe the entities to which notices of availability for developing low- and moderate-income housing, for open-space purposes, and for school facilities construction are required to be sent.

Existing law requires that an entity proposing to use surplus land for developing low- and moderate-income housing agree to make available a specified percentage of the total number of units de veloped at affordable housing cost or affordable rent to lower income households, as specified, and that this requirement be contained in a co venant or restriction recorded against the surplus land at the time of the sale that shall run with the land and be enforceable by specified entities and persons.

This bill would make nonsubstantive changes to the pro visions that describe the entities and persons that can enforce the co venant or restriction.

Existing law specifies that after the disposing agency has received a notice of interest from the entity desiring to purchase or lease the land, if price or terms cannot be agreed upon after a good f aith negotiation period, the land may be disposed of, as specified.

This bill would recast that provision to state that after the specified good faith negotiation, the local agency may dispose of the surplus land, as specified.

Existing law proclaims that nothing in these pro visions relating to the disposition of surplus property shall preclude a local agency, housing authority, or redevelopment agency that purchases land from a disposing agency from reconveying the land to a nonprofit or for -profit housing developer for development of low- and moderate-income housing. 97 AB 480 — 3 —

This bill would modify that provision to remove reference to housing authorities and redevelopment agencies and make other nonsubstantive changes.

Existing law specifies that an y public agenc y disposing of surplus land to a specified entity that intends to use the land for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate-income housing purposes may pro vide for a payment period of up to 20 years in any contract of sale or sale by trust deed for the land.

This bill would modify those pro visions to refer, instead, to a local agency disposing of surplus land.

Existing law authorizes a local agency to negotiate concurrently with all entities that provide notice of interest for the purpose of developing affordable housing that meets specified requirements.

This bill w ould modify that pro vision to reference lo w- and moderate-income housing that meets specified requirements. The bill would make other nonsubstantive changes to this provision.

Existing law makes a local agency that disposes of land in violation of these pro visions after recei ving notice from the Department of Housing and Community Development liable for a penalty, of 30% of the final sale price of the surplus land sold for a first violation and 50% for any subsequent violation.

This bill would, instead, make a local agency that disposes of surplus land in violation of these provisions after receiving a notification from the Department of Housing and Community Development, as specified, that the local agenc y is in violation of these pro visions liable for a penalty of 30% of the greater of the final sale price, or of the fair market value at the time of disposition, as determined by an independent appraisal, of the surplus land for a first violation, and 50% of the greater of the 2 sums, for an y subsequent violation. The bill w ould mak e nonsubstantive changes to, and correct an erroneous cross-reference in, those provisions.

The California Constitution requires the state to reimb urse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
97 — 4 — AB 480

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 54221 of the Government Code is line 2 amended to read:
line 3 54221. As used in this article, the follo wing definitions shall line 4 apply:
line 5 (a)  (1)  “Local agenc y” means e very city, whether or ganized line 6 under general law or by charter, county, city and county, district, line 7 including school, sewer, water, utility, and local and regional park line 8 districts of an y kind or class, joint po wers authority, successor line 9 agency to a former rede velopment agency, housing authority, or line 10 other political subdi vision of this state and an y instrumentality line 11 thereof that is empowered to acquire and hold real property. line 12 (2)  The Legislature finds and declares that the term “district” line 13 as used in this article includes all districts within the state, line 14 including, but not limited to, all special districts, se wer, water, line 15 utility, and local and regional park districts, and any other political line 16 subdivision of this state that is a district, and therefore the changes line 17 in paragraph (1) made by the act adding this paragraph that specify line 18 that the provisions of this article apply to all districts, including line 19 school, sewer, water, utility, and local and re gional park districts line 20 of an y kind or class, are declaratory of, and not a change in, line 21 existing law.
line 22 (b)  (1)  “Surplus land” means land owned in fee simple by any line 23 local agency that is not necessary for the agency’s use as declared line 24 by the local agency pursuant to Section 54221.5. line 25 (2)  “Surplus land” includes land held in the Community line 26 Redevelopment Property Trust Fund pursuant to Section 34191.4 line 27 of the Health and Safety Code and land that has been designated line 28 in the long-range property management plan appro ved by the line 29 Department of Finance pursuant to Section 34191.5 of the Health line 30 and Safety Code, either for sale or for future de velopment, but line 31 does not include any specific disposal of land to an identified entity line 32 described in the plan.
line 33 (3)  Nothing in this article prevents a local agency from obtaining line 34 fair market value for the disposition of surplus land consistent with line 35 Section 54226.
97 AB 480 — 5 —

line 1 (c)  (1)  Except as pro vided in paragraph (2), “agenc y’s use” line 2 shall include, but not be limited to, land that is being used, or is line 3 planned to be used pursuant to a written plan adopted by the local line 4 agency’s go verning board, for agenc y w ork or operations, line 5 including, but not limited to, utility sites, watershed property, land line 6 being used for conserv ation purposes, land for demonstration, line 7 exhibition, or educational purposes related to greenhouse g as line 8 emissions, and b uffer sites near sensiti ve go vernmental uses, line 9 including, but not limited to, wastewater treatment plants. line 10 (2)  (A)  “Agency’s use” shall not include commercial or line 11 industrial uses or acti vities, including nongo vernmental retail, line 12 entertainment, or office development. Property disposed of for the line 13 sole purpose of investment or generation of re venue shall not be line 14 considered necessary for the agency’s use.
line 15 (B)  In the case of a local agenc y that is a district, e xcepting line 16 those whose primary mission or purpose is to supply the public line 17 with a transportation system, “agenc y’s use” may include line 18 commercial or industrial uses or acti vities, including line 19 nongovernmental retail, entertainment, or office de velopment or line 20 be for the sole purpose of in vestment or generation of revenue if line 21 the agenc y’s go verning body tak es action in a public meeting line 22 declaring that the use of the site will do one of the following:
line 23 (i)  Directly further the e xpress purpose of agenc y w ork or line 24 operations.
line 25 (ii)  Be expressly authorized by a statute go verning the local line 26 agency, pro vided the district complies with Section 54233.5 if line 27 applicable.
line 28 (d)  “Open-space purposes” means the use of land for public line 29 recreation, enjoyment of scenic beauty, or conservation or use of line 30 natural resources.
line 31 (e)  “Persons and families of low or moderate income” has the line 32 same meaning as pro vided in Section 50093 of the Health and line 33 Safety Code.
line 34 (f)  (1)  Except as pro vided in paragraph (2), “e xempt surplus line 35 land” means any of the following:
line 36 (A)  Surplus land that is transferred pursuant to Section 25539.4 line 37 or 37364.
line 38 (B)  Surplus land that is (i) less than 5,000 square feet in area, line 39 (ii) less than the minimum le gal residential b uilding lot size for line 40 the jurisdiction in which the parcel is located, or 5,000 square feet 97 — 6 — AB 480

line 1 in area, whichever is less, or (iii) has no record access and is less line 2 than 10,000 square feet in area; and is not contiguous to land owned line 3 by a state or local agency that is used for open-space or low- and line 4 moderate-income housing purposes. If the surplus land is not sold line 5 to an owner of contiguous land, it is not considered exempt surplus line 6 land and is subject to this article.
line 7 (C)  Surplus land that a local agency is exchanging for another line 8 property necessary for the agency’s use.
line 9 (D)  Surplus land that a local agenc y is transferring to another line 10 local, state, or federal agency for the agency’s use, or to a federally line 11 recognized California Indian tribe.
line 12 (E)  Surplus land that is a former street, right of w ay, or line 13 easement, and is conveyed to an owner of an adjacent property. line 14 (F)  Surplus land that is put out to open, competiti ve bid by a line 15 local agency, provided all entities identified in subdivision (a) of line 16 Section 54222 will be invited to participate in the competitive bid line 17 process, for either of the following purposes:
line 18 (i)  A housing development, that may have ancillary commercial line 19 ground floor uses, that restricts 100 percent of the residential units line 20 to persons and families of low or moderate income, with at least line 21 75 percent of the residential units restricted to lo wer income line 22 households, as defined in Section 50079.5 of the Health and Safety line 23 Code, with an af fordable sales price or an af fordable rent, as line 24 defined in Sections 50052.5 or 50053 of the Health and Safety line 25 Code, for a minimum of 55 years for rental housing and 45 years line 26 for o wnership housing, and in no e vent shall the maximum line 27 affordable sales price or rent level be higher than 20 percent below line 28 the median mark et rents or sales prices for the neighborhood in line 29 which the site is located.
line 30 (ii)  A mixed-use development that is more than one acre in area, line 31 that includes not less than 300 residential units, and that restricts line 32 at least 25 percent of the residential units to lo wer income line 33 households, as defined in Section 50079.5 of the Health and Safety line 34 Code, with an af fordable sales price or an af fordable rent, as line 35 defined in Sections 50052.5 and 50053 of the Health and Safety line 36 Code, for a minimum of 55 years for rental housing and 45 years line 37 for ownership housing.
line 38 (G)  Surplus land that is subject to v alid legal restrictions that line 39 are not imposed by the local agency and that would make housing line 40 prohibited, unless there is a feasible method to satisf actorily 97 AB 480 — 7 —

line 1 mitigate or avoid the prohibition on the site. The legal restriction line 2 shall be documented and v erified in writing by the rele vant line 3 agencies that have authority relating to the restrictions. An existing line 4 nonresidential land use designation on the surplus land is not a line 5 legal restriction that would make housing prohibited for purposes line 6 of this subparagraph. Nothing in this article limits a local line 7 jurisdiction’s authority or discretion to approve land use, zoning, line 8 or entitlement decisions in connection with the surplus land. line 9 (H)  Surplus land that was granted by the state in trust to a local line 10 agency or that was acquired by the local agency for trust purposes line 11 by purchase or e xchange, and for which disposal of the land is line 12 authorized or required subject to conditions established by statute. line 13 (I)  Land that is subject to Sections 17388, 17515, 17536, 81192, line 14 81397, 81399, 81420, and 81422 of the Education Code and Part line 15 14 (commencing with Section 53570) of Division 31 of the Health line 16 and Safety Code, unless compliance with this article is expressly line 17 required.
line 18 (J)  Surplus land that is a former military base that was conveyed line 19 by the federal go vernment to a local agenc y, and is subject to line 20 Article 8 (commencing with Section 33492.125) of Chapter 4.5 line 21 of Part 1 of Division 24 of the Health and Safety Code, provided line 22 that all of the following conditions are met:
line 23 (i)   The former military base has an aggregate area greater than line 24 five acres, is e xpected to include a mix of residential and line 25 nonresidential uses, and is expected to include no fewer than 1,400 line 26 residential units upon completion of development or redevelopment line 27 of the former military base.
line 28 (ii)  The affordability requirements for residential units shall be line 29 governed by a settlement agreement entered into prior to September line 30 1, 2020. Furthermore, at least 25 percent of the initial 1,400 line 31 residential units de veloped shall be restricted to lo wer income line 32 households, as defined in Section 50079.5 of the Health and Safety line 33 Code, with an af fordable sales price or an af fordable rent, as line 34 defined in Sections 50052.5 and 50053 of the Health and Safety line 35 Code, for a minimum of 55 years for rental housing and 45 years line 36 for ownership housing.
line 37 (iii)  Before disposition of the surplus land, the agenc y adopts line 38 written findings that the land is e xempt surplus land pursuant to line 39 this subparagraph.
97 — 8 — AB 480

line 1 (iv)  Before disposition of the surplus land, the recipient has line 2 negotiated a project labor agreement consistent with the local line 3 agency’s project stabilization agreement resolution, as adopted on line 4 February 2, 2021, and an y succeeding ordinance, resolution, or line 5 policy, regardless of the length of the agreement between the local line 6 agency and the recipient.
line 7 (v)  The agenc y includes in the annual report required by line 8 paragraph (2) of subdi vision (a) of Section 65400 the status of line 9 development of residential units on the former military base, line 10 including the total number of residential units that ha ve been line 11 permitted and what percentage of those residential units are line 12 restricted for persons and families of low or moderate income, as line 13 defined in Section 50093 of the Health and Safety Code, or lower line 14 income households, as defined in Section 50079.5 of the Health line 15 and Safety Code.
line 16 A violation of this subparagraph is subject to the penalties line 17 described in Section 54230.5. Those penalties are in addition to line 18 any remedy a court may order for violation of this subparagraph line 19 or the settlement agreement.
line 20 (K)  Real property that is used by a district for agenc y’s use line 21 expressly authorized in subdivision (c).
line 22 (L)  Land that has been transferred before June 30, 2019, by the line 23 state to a local agenc y pursuant to Section 32667 of the Streets line 24 and Highways Code and has a minimum planned residential density line 25 of at least 100 dwelling units per acre, and includes 100 or more line 26 residential units that are restricted to persons and families of low line 27 or moderate income, with an affordable sales price or an affordable line 28 rent, as defined in Sections 50052.5 and 50053 of the Health and line 29 Safety Code, for a minimum of 55 years for rental housing and 45 line 30 years for ownership housing. For purposes of this paragraph, not line 31 more than 20 percent of the af fordable units may be restricted to line 32 persons and families of moderate income and at least 80 percent line 33 of the af fordable units must be restricted to lo wer income line 34 households as defined in Section 50079.5 of the Health and Safety line 35 Code.
line 36 (M)  Land that is o wned by a California public-use airport on line 37 which residential use is prohibited pursuant to Federal Aviation line 38 Administration Order 5190.6B, Airport Compliance Program, line 39 Chapter 20 — Compatible Land Use and Airspace Protection. 97 AB 480 — 9 —

line 1 (2)  Notwithstanding paragraph (1), a written notice of the line 2 availability of surplus land for open-space purposes shall be sent line 3 to the entities described in subdivision (b) of Section 54222 before line 4 disposing of the surplus land, provided the land does not meet the line 5 criteria in subparagraph (H) of paragraph (1), if the land is any of line 6 the following:
line 7 (A)  Within a coastal zone.
line 8 (B)  Adjacent to a historical unit of the State Parks System. line 9 (C)  Listed on, or determined by the State Office of Historic line 10 Preservation to be eligible for , the National Re gister of Historic line 11 Places.
line 12 (D)  Within the Lake Tahoe region as defined in Section 66905.5. line 13 SEC. 2. Section 54221.5 is added to the Government Code, to line 14 read:
line 15 54221.5. (a)  Before taking an y action to dispose of land, a line 16 local agency shall declare that the land is either “surplus land” or line 17 “exempt surplus land” as specified in this section. The declaration line 18 shall be supported by written findings before the local agency may line 19 dispose of the land in a manner that is consistent with this section line 20 and the local agency’s policies.
line 21 (b)  Except as provided in subdivision (c), a local agency shall line 22 take formal action at a regular public meeting to declare that land line 23 is either “surplus land” or “exempt surplus land.” line 24 (c)  Notwithstanding subdivision (b), a local agency may declare line 25 administratively that land is not required to make a declaration at line 26 a public meeting for land that is “exempt surplus land” pursuant line 27 to subparagraphs (A), (B), (E), (H), or (I) (I), or (M) of paragraph line 28 (1) of subdi vision (f) of Section 54221 if the declaration and line 29 findings are local a gency identifies the land in a notice that is line 30 published and available for public comment, including notice to line 31 the entities identified in subdivision (a) of Section 54222, at least line 32 30 days before the declaration exemption takes effect. line 33 (d)  Notwithstanding Section 54222.3, 30 days before disposing line 34 of land declared “exempt surplus land,” a local agency shall provide line 35 the Department of Housing and Community Development a written line 36 notification of its declaration and findings in a form and manner line 37 prescribed by the department.
line 38 (e)  A local agenc y may, on an annual basis, declare multiple line 39 parcels as “surplus land” or “exempt surplus land.” 97 — 10 — AB 480

line 1 SEC. 3. Section 54222 of the Government Code is amended line 2 to read:
line 3 54222. Except as provided in Division 23 (commencing with line 4 Section 33000) of the Public Resources Code, an y local agenc y line 5 disposing of surplus land, declared pursuant to subdivision (b) of line 6 Section 54221.5, shall send, before disposing of that property or line 7 participating in ne gotiations to dispose of that property with a line 8 prospective transferee, a written notice of a vailability of the line 9 property to all of the following:
line 10 (a)  (1)  A written notice of availability for developing low- and line 11 moderate-income housing, in a form prescribed by the Department line 12 of Housing and Community De velopment, shall be sent to an y line 13 local public entity, as defined in Section 50079 of the Health and line 14 Safety Code, that has jurisdiction where the surplus land is located. line 15 Housing sponsors, as defined by Section 50074 of the Health and line 16 Safety Code, that ha ve notified the Department of Housing and line 17 Community Development of their interest in surplus land shall be line 18 sent a notice of availability for the purpose of developing low- and line 19 moderate-income housing. All notices shall be sent by electronic line 20 mail, or by certified mail, and shall include the location and a line 21 description of the property.
line 22 (2)  The Department of Housing and Community Development line 23 shall maintain on its internet website an up-to-date listing of, and line 24 a link to, all notices of availability throughout the state and a listing line 25 of all entities, including housing sponsors, that ha ve notified the line 26 department of their interest in surplus land for the purpose of line 27 developing low- and moderate-income housing.
line 28 (b)  A written notice of availability for open-space purposes shall line 29 be sent:
line 30 (1)  To an y park or recreation department of an y city within line 31 which the surplus land is located.
line 32 (2)  To any park or recreation department of the county within line 33 which the surplus land is located.
line 34 (3)  To any regional park authority ha ving jurisdiction within line 35 the area in which the surplus land is located.
line 36 (4)  To the State Resources Agency or an y agenc y that may line 37 succeed to its powers.
line 38 (c)  A written notice of a vailability of land suitable for school line 39 facilities construction or use by a school district for open-space 97 AB 480 — 11 —

line 1 purposes shall be sent to an y school district that has jurisdiction line 2 where the surplus land is located.
line 3 (d)  A written notice of a vailability for de veloping property line 4 located within an infill opportunity zone designated pursuant to line 5 Section 65088.4 or within an area covered by a transit village plan line 6 adopted pursuant to the Transit Village De velopment Planning line 7 Act of 1994 (Article 8.5 (commencing with Section 65460) of line 8 Chapter 3 of Di vision 1 of Title 7) shall be sent to an y county, line 9 city, city and county, successor agency to a former redevelopment line 10 agency, public transportation agency, or housing authority within line 11 whose jurisdiction the surplus land is located. line 12 (e)  The entity desiring to purchase or lease the surplus land for line 13 any of the purposes authorized by this section shall notify in writing line 14 the disposing agenc y of its interest in purchasing or leasing the line 15 land within 60 days after the agency’s notice of availability is sent line 16 via certified mail or provided via electronic mail. line 17 (f)  For the purposes of this section, “participating in line 18 negotiations” does not include the commissioning of appraisals, line 19 due diligence prior to disposition, discussions with brokers or real line 20 estate agents not representing a potential b uyer, or other studies line 21 to determine value or best use of land, issuance of a request for line 22 qualifications, development of marketing materials, or discussions line 23 conducted exclusively among local agency employees and elected line 24 officials.
line 25 SEC. 4. Section 54222.5 of the Government Code is amended line 26 to read:
line 27 54222.5. An entity proposing to use the surplus land for line 28 developing low- and moderate-income housing shall agree to make line 29 available not less than 25 percent of the total number of units line 30 developed on the parcels at affordable housing cost, as defined in line 31 Section 50052.5 of the Health and Safety Code, or affordable rent, line 32 as defined in Section 50053 of the Health and Safety Code, to line 33 lower income households, as defined in Section 50079.5 of the line 34 Health and Safety Code. Rental units shall remain af fordable to, line 35 and occupied by, lower income households for a period of at least line 36 55 years. The initial occupants of all ownership units shall be lower line 37 income households, and the units shall be subject to an equity line 38 sharing agreement consistent with paragraph (2) of subdi vision line 39 (c) of Section 65915. These requirements shall be contained in a line 40 covenant or restriction recorded against the surplus land at the time 97 — 12 — AB 480

line 1 of sale, that shall run with the land and shall be enforceable, against line 2 any o wner who violates a co venant or restriction and each line 3 successor in interest who continues the violation, by an y of the line 4 following:
line 5 (a)  The local agency that disposed of the surplus land. line 6 (b)  A resident of a unit subject to this section. line 7 (c)  A residents’ association with members who reside in units line 8 subject to this section.
line 9 (d)  A former resident of a unit subject to this section who last line 10 resided in that unit.
line 11 (e)  An applicant seeking to enforce the covenants or restrictions line 12 for a particular unit that is subject to this section, if the applicant line 13 conforms to all of the following:
line 14 (1)  Is of low or moderate income, pursuant to Section 50093 of line 15 the Health and Safety Code.
line 16 (2)  Is able and willing to occupy that particular unit. line 17 (3)  Was denied occupanc y of that particular unit due to an line 18 alleged breach of a co venant or restriction implementing this line 19 section.
line 20 (f)  A person on an affordable housing waiting list who is of low line 21 or moderate income, pursuant to Section 50093 of the Health and line 22 Safety Code, and who is able and willing to occupy a unit subject line 23 to this section.
line 24 SEC. 5. Section 54223 of the Government Code is amended line 25 to read:
line 26 54223. (a)  After the disposing agenc y has recei ved a notice line 27 of interest from the entity desiring to purchase or lease the surplus line 28 land on terms that comply with this article, the disposing agenc y line 29 and the entity shall enter into good faith negotiations to determine line 30 a mutually satisfactory sales price and terms or lease terms. If the line 31 price or terms cannot be agreed upon after a good faith negotiation line 32 period of not less than 90 days, the local agenc y may dispose of line 33 the surplus land without further re gard to this article, except that line 34 Section 54233 shall apply.
line 35 (b)  Residential use shall be deemed an acceptable use for the line 36 surplus land for the purposes of good f aith negotiations with a line 37 local agency conducted pursuant to this article. Nothing in this line 38 subdivision shall restrict a local jurisdiction’ s authority or line 39 discretion to approve land use, zoning, or entitlement decisions in line 40 connection with the surplus land. Except as provided in subdivision 97 AB 480 — 13 —

line 1 (c), terms agreed to pursuant to the ne gotiations shall not do any line 2 of the following:
line 3 (1)  Disallow residential use of the site as a condition of the line 4 disposal.
line 5 (2)  Reduce the allo wable number of residential units or the line 6 maximum lot coverage below what may be allowed by zoning or line 7 general plan requirements.
line 8 (3)  Require as a condition of disposal, any design standards or line 9 architectural requirements that w ould have a substantial adv erse line 10 effect on the viability or af fordability of a housing de velopment line 11 for very low, low-, or moderate-income households, other than the line 12 minimum standards required by general plan, zoning, and line 13 subdivision standards and criteria.
line 14 (c)  Terms agreed to pursuant to the ne gotiations required by line 15 subdivision (a) may include limitations on residential use or density line 16 if, without the limitations, the residential use or density w ould line 17 have a specific, adv erse impact, supported by written findings, line 18 upon the public health or safety or upon the operation or facilities line 19 of a local agency, and there is no feasible method to satisfactorily line 20 mitigate the impact.
line 21 SEC. 6. Section 54224 of the Government Code is amended line 22 to read:
line 23 54224. Nothing in this article shall preclude a local agenc y line 24 that purchases surplus land from a disposing agenc y pursuant to line 25 this article from recon veying the surplus land to a nonprofit or line 26 for-profit housing de veloper for de velopment of lo w- and line 27 moderate-income housing as authorized under other provisions of line 28 law.
line 29 SEC. 7. Section 54225 of the Government Code is amended line 30 to read:
line 31 54225. Any local agency disposing of surplus land to an entity line 32 described in Section 54222 that intends to use the land for park or line 33 recreation purposes, for open-space purposes, for school purposes, line 34 or for low- and moderate-income housing purposes may pro vide line 35 for a payment period of up to 20 years in an y contract of sale or line 36 sale by trust deed for the land. The payment period for surplus line 37 land disposed of for housing for persons and f amilies of low and line 38 moderate income may e xceed 20 years, b ut the payment period line 39 shall not exceed the term that the land is required to be used for line 40 low- or moderate-income housing.
97 — 14 — AB 480

line 1 SEC. 8. Section 54227 of the Government Code is amended line 2 to read:
line 3 54227. (a)  In the e vent that an y local agenc y disposing of line 4 surplus land receives a notice of interest to purchase or lease that line 5 land from more than one of the entities to which notice of line 6 availability was given pursuant to this article, the local agenc y line 7 shall give first priority to the entity or entities that agree to use the line 8 site for housing that meets the requirements of Section 54222.5. line 9 If the local agency receives offers from more than one entity that line 10 agrees to meet the requirements of Section 54222.5, then the local line 11 agency shall give priority to the entity that proposes to provide the line 12 greatest number of units that meet the requirements of Section line 13 54222.5. In the event that more than one entity proposes the same line 14 number of units that meet the requirements of Section 54222.5, line 15 priority shall be gi ven to the entity that proposes the deepest line 16 average le vel of af fordability for the af fordable units. A local line 17 agency may negotiate concurrently with all entities that pro vide line 18 notice of interest for the purpose of de veloping lo w- and line 19 moderate-income housing that meets the requirements of Section line 20 54222.5.
line 21 (b)  Notwithstanding subdivision (a), first priority shall be given line 22 to an entity that agrees to use the site for park or recreational line 23 purposes if the land being of fered is already being used and will line 24 continue to be used for park or recreational purposes, or if the land line 25 is designated for park and recreational use in the local general plan line 26 and will be developed for that purpose.
line 27 SEC. 9. Section 54230.5 of the Government Code is amended line 28 to read:
line 29 54230.5. (a)  (1)  A local agency that disposes of surplus land line 30 in violation of this article after recei ving a notification from the line 31 Department of Housing and Community De velopment pursuant line 32 to subdivision (b) that the local agency is in violation of this article line 33 shall be liable for a penalty of 30 percent of the greater of the final line 34 sale price, or of the f air market value of the surplus land at the line 35 time of disposition, as determined by an independent appraisal, line 36 appraisal of the surplus land sold in violation of this article for a line 37 first violation violation, and 50 percent of the greater of the tw o line 38 sums, for any subsequent violation. An entity identified in Section line 39 54222 or a person who w ould ha ve been eligible to apply for line 40 residency in an y af fordable housing de veloped or a housing 97 AB 480 — 15 —

line 1 organization as defined in Section 65589.5, or an y beneficially line 2 interested person or entity may bring an action to enforce this line 3 section. A local agenc y shall have 60 days to cure or correct an line 4 alleged violation before an action may be brought to enforce this line 5 section, unless the local agency disposes of the surplus land before line 6 curing or correcting the alleged violation, or the department deems line 7 the alleged violation not to be a violation in less than 60 days. line 8 (2)  A penalty assessed pursuant to this subdivision shall, except line 9 as otherwise provided, be deposited into a local housing trust fund. line 10 The local agency may elect to instead deposit the penalty moneys line 11 into the Building Homes and Jobs Trust Fund or the Housing line 12 Rehabilitation Loan Fund. Penalties shall not be paid out of funds line 13 already dedicated to affordable housing, including, but not limited line 14 to, Lo w and Moderate Income Housing Asset Funds, funds line 15 dedicated to housing for v ery low, low-, and moderate-income line 16 households, and federal HOME Investment Partnerships Program line 17 and Community De velopment Block Grant Program funds. The line 18 local agenc y shall commit and e xpend the penalty mone ys line 19 deposited into the local housing trust fund within fiv e years of line 20 deposit for the sole purpose of financing newly constructed housing line 21 units that are affordable to extremely low, very low, or low-income line 22 households.
line 23 (3)  Five years after deposit of the penalty moneys into the local line 24 housing trust fund, if the funds have not been expended, the funds line 25 shall revert to the state and be deposited in the Building Homes line 26 and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for line 27 the sole purpose of financing ne wly constructed housing units line 28 located in the same jurisdiction as the surplus land and that are line 29 affordable to extremely low, very low, or low-income households. line 30 Expenditure of an y penalty mone ys deposited into the Building line 31 Homes and Jobs Trust Fund or the Housing Rehabilitation Loan line 32 Fund pursuant to this subdivision shall be subject to appropriation line 33 by the Legislature.
line 34 (b)  (1)  Before agreeing to terms for the disposition of surplus line 35 land, a local agency shall provide to the Department of Housing line 36 and Community De velopment a description of the notices of line 37 availability sent, and negotiations conducted with any responding line 38 entities, in regard to the disposal of the parcel of surplus land and line 39 a cop y of an y restrictions to be recorded ag ainst the property line 40 pursuant to Section 54222.5, 54233, or 54233.5, whiche ver is 97 — 16 — AB 480

line 1 applicable, in a form prescribed by the Department of Housing line 2 and Community De velopment. A local agenc y may submit this line 3 information after it has sent notices of a vailability required by line 4 Section 54222 and concluded ne gotiations with an y responding line 5 agencies. A local agency shall not be liable for the penalty imposed line 6 by subdivision (a) if the Department of Housing and Community line 7 Development does not notify the agenc y that the agenc y is in line 8 violation of this article within 30 days of receiving the description. line 9 (2)  The Department of Housing and Community Development line 10 shall do all of the following:
line 11 (A)  Make a vailable educational resources and materials that line 12 inform each agenc y of its oblig ations under this article and that line 13 provide guidance on how to comply with its provisions. line 14 (B)  Review information submitted pursuant to paragraph (1). line 15 (C)  Submit written findings to the local agency within 30 days line 16 of receipt of the description required by paragraph (1) from the line 17 local agency if the proposed disposal of the land will violate this line 18 article.
line 19 (D)  Review, adopt, amend, or repeal guidelines to establish line 20 uniform standards to implement this section. The guidelines line 21 adopted pursuant to this subdivision are not subject to Chapter 3.5 line 22 (commencing with Section 11340) of Part 1 of Division 3 of Title line 23 2.
line 24 (E)  Provide the local agency reasonable time, but not less than line 25 60 days, to respond to the findings before taking any other action line 26 authorized by this section.
line 27 (3)  (A)  The local agency shall consider findings made by the line 28 Department of Housing and Community De velopment pursuant line 29 to subparagraph (C) of paragraph (2) and shall do one of the line 30 following:
line 31 (i)  Correct any issues identified by the Department of Housing line 32 and Community Development.
line 33 (ii)  Provide written findings e xplaining the reason its process line 34 for disposing of surplus land complies with this article and line 35 addressing the Department of Housing and Community line 36 Development’s findings.
line 37 (B)  If the local agency does not correct issues identified by the line 38 Department of Housing and Community De velopment, does not line 39 provide findings explaining the reason its process for disposing of line 40 surplus land complies with this article and addressing the 97 AB 480 — 17 —

line 1 Department of Housing and Community Development’s findings, line 2 or if the Department of Housing and Community De velopment line 3 finds that the local agenc y’s findings are deficient in addressing line 4 the issues identified by the Department of Housing and Community line 5 Development, the Department of Housing and Community line 6 Development shall notify the local agenc y, and may notify the line 7 Attorney General, that the local agency is in violation of this article. line 8 (c)  The Department of Housing and Community Development line 9 shall implement the changes in this section made by the act adding line 10 this subdivision commencing on January 1, 2021. line 11 (d)  Notwithstanding subdivision (c), this section shall not be line 12 construed to limit an y other remedies authorized under la w to line 13 enforce this article including public records act requests pursuant line 14 to Division 10 (commencing with Section 7920.000) of Title 1. line 15 SEC. 10. If the Commission on State Mandates determines line 16 that this act contains costs mandated by the state, reimbursement line 17 to local agencies and school districts for those costs shall be made line 18 pursuant to Part 7 (commencing with Section 17500) of Division line 19 4 of Title 2 of the Government Code.

O
97 — 18 — AB 480

AMENDED IN SENATE APRIL 13, 2023
AMENDED IN SENATE MARCH 22, 2023
SENATE BILL No. 747
Introduced by Senator Caballero
February 17, 2023
An act to amend Sections 52200, 52200.6, 52201, 54221, 54222, 54226, 54230, 54230.5, and 54234 of the Go vernment Code, relating to local government.
legislative counsel’s digest
SB 747, as amended, Caballero. Land use: economic development:
surplus land.
(1)  Existing law authorizes a city, county, or city and county , with the approval of its legislative body by resolution after a public hearing, to acquire, sell, or lease property in furtherance of the creation of an economic opportunity , as defined. Existing la w specifies the Legislature’s intent regarding those provisions.

This bill would authorize a city, county, or city and county, in addition to a sale or lease, to otherwise transfer property to create an economic opportunity. The bill w ould make related, conforming changes. The bill would additionally state the Le gislature’s intent is to ensure that residents of the state ha ve access to jobs that allo w them to af ford housing without the need for public subsidies.

Existing law provides that the creation of an economic opportunity under that la w is subject to certain notice and disclosure pro visions.

These pro visions require each local agenc y, before appro ving an economic de velopment subsidy within its jurisdiction, to pro vide specified information in written form to the public and through its internet website, if a vailable, about the b usiness entities that are the

97 beneficiary of the economic de velopment subsidy, the start and end dates and schedule of the subsidy, other related information, and to hold public hearings and report on those subsidies at specified intervals.

This bill would subject the creation of an economic opportunity under the above-described provisions to only the above-described requirements regarding pro viding information to the public on that economic opportunity. The bill w ould specify that these pro visions are an alternative to any other authority or procedures for cities and counties to acquire, sell, lease, or otherwise transfer real property o wned by a city or county.
(2)  Existing law prescribes requirements for the disposal of surplus land by a local agenc y. Existing law defines “surplus land” for those purposes to generally mean land owned in fee simple by a local agency for which the local agenc y’s governing body takes formal action in a public meeting declaring that the land is surplus and not necessary for the agency’s use. Existing law provides that these requirements do not apply to the disposal of exempt surplus land by an agency of the state or any local government. Existing law requires a local agency to declare land as either surplus land or e xempt surplus land, as supported by written findings, before a local agency may take any action to dispose of it. Under e xisting law, exempt surplus land includes, among other types of land, property that is used by a district for an “agenc y’s use” as expressly authorized, land for specified de velopments, including a mixed-use development, if put out to open, competitive bid by a local agency, as specified, and surplus land that is subject to specified valid legal restrictions.

This bill would define the term “dispose” for these purposes to mean the sale of the surplus property or a lease of any surplus property entered into on or after J anuary 1, 2024, for a term longer than 35 years, including renewal options, as specified. The bill w ould also redefine the term “agenc y’s use” to include use for transit or transit-oriented development, property owned by a port that is used to support logistics uses, airports, state tidelands, sites for broadband equipment or wireless facilities, and w aste disposal sites. The bill w ould define a district relative to an “agency’s use” to include infrastructure financing districts, enhanced infrastructure financing districts, community re vitalization and investment authorities, affordable housing authorities, transit village development districts, and climate resilience districts.

This bill would revise and recast certain of the provisions related to exempt surplus land, including surplus land that is not contiguous to 97 — 2 — SB 747

land owned by a state or local agenc y, that is used for open space or low- and moderate- income housing purposes and meets specified conditions, surplus land that is a former parking lot that is conveyed to an owner of an adjacent property, and provisions related to mixed-use developments, among others. The bill would also specify that certain legal restrictions are valid legal restrictions and would require that for surplus land that is subject to v alid legal restrictions to be considered exempt surplus land, the valid restrictions must be included as part of the local agenc y’s above-described written findings. The bill w ould also include as e xempt surplus land, land that is jointly de veloped or used for a joint de velopment, land that w as purchased using federal funds, land transferred to a community land trust, as specified, and additional categories of land determined by the department, including sites that are not suitable for housing.

This bill would authorize a local agency to administratively declare that land is e xempt surplus land, if the declaration and findings are posted on the local agency’s internet website, published and available for public comment, including gi ving notice to specified entities, at least 30 days before the declarations tak e effect. The bill would make the local agency’s declaration presumed conclusive, except as specified.

The bill w ould specify that the la w governing surplus land does not require a local agency to dispose of land that is determined to be surplus.

The bill would specify that the requirements for the disposal of surplus land by a local agenc y do not apply to properties that a local agenc y proposes to sell, lease, or otherwise transfer under the above-described economic opportunity provisions.

Existing law generally requires a local agenc y disposing of surplus land to send a written notice of availability of the property to specified entities prior to disposing of that property or participating in negotiations to dispose of that property with a prospective transferee.

This bill would create an e xception from that notice requirement if the prospective transferee is an affordable housing developer proposing to develop an af fordable housing project on the site which that will meet or exceed a 25% affordability threshold, as described.

Under existing law, a local agency that disposes of surplus land after receiving a notification from the Department of Housing and Community Development that the agency is in violation of the law is liable for 30% of the final sale price of the land. Existing law authorizes certain entities and interested persons to bring an action to enforce these pro visions.

Existing law grants a local agency 60 days to cure or correct an alleged 97 SB 747 — 3 —

violation before an action may be brought to enforce this pro vision, except as specified.

This bill would require a local agenc y, upon receiving a notice of a violation from the department, to consider the matter at a public meeting within 30 days if the local agency proceeds with the disposal. The bill would specify that following the public hearing, the local agenc y has 60 days to cure or correct an alleged violation before an action may be brought to enforce this provision.

Existing law further requires the department to review, adopt, amend, or repeal guidelines to establish uniform standards to implement this provision and specifies that those guidelines are not subject to the Administrative Procedure Act.

This bill would additionally require the department to solicit public comments for 30 days and consider and respond in writing to the public comments prior to adopting, amending, or repealing the guidelines. The bill w ould additionally require the department to pro vide the local agency an appeals process to o verturn an adv erse action by the department affecting the local agency overseen by an independent trier of fact.

Existing law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as the y existed on December 31, 2019, if those dispositions are pursuant to specified legal agreements and the disposition is completed by December 31, 2022, or by December 31, 2024, if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement duly authorized by the governing body to purchase the property from a former redevelopment agency.

This bill w ould e xpand the applicability of those disposition procedures to December 31, 2025, as to property located in a city or county that entered into a le gally binding agreement to dispose of the property prior to September 30, 2019, and the transferee has exercised one or more unilateral e xtension options which were a component of the original agreement.

With respect to land held in the Community Redevelopment Property Trust Fund or designated in a long-range property management plan either for sale or retained for future development, existing law provides that certain dispositions of real property by local agencies are subject to surplus land disposal procedures as the y existed on December 31, 2019, if those dispositions are pursuant to specified le gal agreements entered into not later than December 31, 2020, and the disposition is 97 — 4 — SB 747

completed by December 31, 2022, or by December 31, 2024, if the property is located in a charter city with a population of over 2,000,000 persons and a local agency has an option agreement authorized by the local agency’s governing body to purchase the property from the former redevelopment agency.

This bill w ould e xpand the applicability of those disposition procedures for which an agreement has been entered into by December 31, 2020, if the disposition is completed by December 31, 2025, and the property is located in a city or county that entered into a le gally binding agreement to dispose of the property before September 30, 2019, and the transferee has exercised one or more unilateral extension options which were a component of the original agreement.

By imposing new duties on local agencies, the bill w ould impose a state-mandated local program.

The California Constitution requires the state to reimb urse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 52200 of the Government Code is line 2 amended to read:
line 3 52200. It is the intent of the Le gislature to do all of the line 4 following:
line 5 (a)  Promote economic de velopment on a local le vel so that line 6 communities can enact local strate gies to increase jobs, create line 7 economic opportunity, and generate tax re venue for all le vels of line 8 government.
line 9 (b)  Give local go vernments tools, at no cost to the state, that line 10 allow local go vernments to use their funds in a manner that line 11 promotes economic opportunity.
line 12 (c)  With the loss of redevelopment funds, cities, counties, and line 13 cities and counties need to continue certain po wers afforded to line 14 redevelopment agencies that were critical to economic 97 SB 747 — 5 —

line 1 development, yet do not have an impact on schools and the state line 2 budget.
line 3 (d)  Ensure that residents of the state ha ve access to jobs that line 4 allow them to afford housing without the need for public subsidies. line 5 SEC. 2. Section 52200.6 of the Government Code is amended line 6 to read:
line 7 52200.6. (a)  (1)  This part shall not be interpreted to authorize line 8 the use of eminent domain for economic development purposes. line 9 (2)  For the purposes of this part, a city , county, or city and line 10 county shall not sell, lease, or otherwise transfer, at a price that is line 11 less than the fair market value, any real property that was acquired line 12 through eminent domain. This prohibition shall not apply to either line 13 of the following:
line 14 (A)  Any real property go verned by a long-range property line 15 management plan pursuant to Section 34191.5 of the Health and line 16 Safety Code.
line 17 (B)  Any housing asset transferred to a city, county, or city and line 18 county pursuant to paragraph (1) of subdi vision (a) of Section line 19 34176 of the Health and Safety Code or subdivision (c) of Section line 20 34181 of the Health and Safety Code, provided that the successor line 21 agency or the designated local authority in the affected jurisdiction line 22 has recei ved a finding of completion from the Department of line 23 Finance pursuant to Section 34179.7 of the Health and Safety line 24 Code.
line 25 (b)  The creation of an economic opportunity pursuant to this line 26 part shall be subject only to the provisions of Section 53083. line 27 (c)  The provisions of this part are an alternati ve to an y other line 28 authority granted to, or procedures required by la w for, cities or line 29 counties to acquire, sell, lease, or otherwise transfer property owned line 30 by a city or county.
line 31 SEC. 3. Section 52201 of the Government Code is amended line 32 to read:
line 33 52201. (a)  (1)  A city, county, or city and county may acquire line 34 property in furtherance of the creation of an economic opportunity. line 35 A city, county, or city and county may sell, lease, or otherwise line 36 transfer property to create an economic opportunity . The line 37 acquisition, sale, lease, or transfer shall first be appro ved by the line 38 legislative body by resolution after a public hearing. Notice of the line 39 time and place of the hearing shall be published in a ne wspaper line 40 of general circulation in the community at least once per week for 97 — 6 — SB 747

line 1 at least two successive weeks, as specified in Section 6066, prior line 2 to the hearing.
line 3 (2)  The city, county, or city and county shall mak e available, line 4 for public inspection and copying at a cost not to exceed the cost line 5 of duplication, a report no later than the time of publication of the line 6 first notice of the hearing mandated by this section. This report line 7 shall contain both of the following:
line 8 (A)  A copy of the proposed acquisition, sale, lease, or transfer. line 9 (B)  A summary that describes and specifies all of the following:
line 10 (i)  The cost of the agreement to the city , county, or city and line 11 county, including land acquisition costs, clearance costs, relocation line 12 costs, the costs of an y improvements to be pro vided by the city, line 13 county, or city and county, plus the expected interest on any loans line 14 or bonds to finance the agreements.
line 15 (ii)  For the sale, lease, or transfer of property , the estimated line 16 value of the interest to be con veyed or leased, determined at the line 17 highest and best uses permitted under the general plan or zoning. line 18 (iii)  For the sale, lease, or transfer of property , the estimated line 19 value of the interest to be con veyed or leased, determined at the line 20 use and with the conditions, co venants, and de velopment costs line 21 required by the sale, lease, or transfer . The purchase price or line 22 present v alue of the lease payments which the lessor will be line 23 required to make during the term of the lease. If the sale price or line 24 total rental amount is less than the fair market value of the interest line 25 to be conveyed or leased, determined at the highest and best use, line 26 then the city, county, or city and county shall pro vide as part of line 27 the summary an explanation of the reasons for the difference. line 28 (iv)  An e xplanation of wh y the acquisition, sale, lease, or line 29 transfer of the property will assist in the creation of economic line 30 opportunity, with reference to all supporting f acts and materials line 31 relied upon in making this explanation.
line 32 (b)  The resolution appro ving the acquisition, sale, lease, or line 33 transfer shall be adopted by a majority vote unless the legislative line 34 body has pro vided by ordinance for a tw o-thirds v ote for that line 35 purpose and shall contain a finding that the acquisition, sale, lease, line 36 or transfer of the property will assist in the creation of economic line 37 opportunity. F or the sale, lease, or transfer of property , the line 38 resolution shall also contain one of the following findings:
line 39 (1)  The consideration is not less than the f air market value at line 40 its highest and best use.
97 SB 747 — 7 —

line 1 (2)  The consideration is not less than the fair reuse value at the line 2 use and with the covenants and conditions and development costs line 3 authorized by the sale, lease, or transfer.
line 4 (c)  The provisions of this section are an alternative to any other line 5 procedures required by law or authority granted by la w to a city, line 6 county, or city and county , to sell, lease, or otherwise transfer line 7 property owned by a city, county, or city and county. line 8 SEC. 4. Section 54221 of the Government Code is amended line 9 to read:
line 10 54221. As used in this article, the follo wing definitions shall line 11 apply:
line 12 (a)  (1)  “Local agenc y” means e very city, whether or ganized line 13 under general law or by charter, county, city and county, district, line 14 including school, sewer, water, utility, and local and regional park line 15 districts of an y kind or class, joint po wers authority, successor line 16 agency to a former rede velopment agency, housing authority, or line 17 other political subdi vision of this state and an y instrumentality line 18 thereof that is empowered to acquire and hold real property. line 19 (2)  The Legislature finds and declares that the term “district” line 20 as used in this article includes all districts within the state, line 21 including, but not limited to, all special districts, se wer, water, line 22 utility, and local and regional park districts, and any other political line 23 subdivision of this state that is a district, and therefore the changes line 24 in paragraph (1) made by the act adding this paragraph that specify line 25 that the provisions of this article apply to all districts, including line 26 school, sewer, water, utility, and local and re gional park districts line 27 of an y kind or class, are declaratory of, and not a change in, line 28 existing law.
line 29 (b)  (1)  “Surplus land” means land owned in fee simple by any line 30 local agency for which the local agenc y’s governing body tak es line 31 formal action in a re gular public meeting declaring that the land line 32 is surplus and is not necessary for the agency’s use. Land shall be line 33 declared either “surplus land” or “e xempt surplus land, ” as line 34 supported by written findings, before a local agency may take any line 35 action to dispose of it consistent with an agenc y’s policies or line 36 procedures. A local agenc y, on an annual basis, may declare line 37 multiple parcels as “surplus land” or “e xempt surplus land. ” A line 38 local agency may administratively declare that land is as “exempt line 39 surplus land” pursuant to subdi vision (e) if the declaration and line 40 findings are posted on the local a gency’s internet website or 97 — 8 — SB 747

line 1 published and a vailable for public comment, and notice to the line 2 entities identified in subdi vision (a) of Section 54222 occurs, at line 3 least 30 days before the declaration takes effect. A local agency’s line 4 declaration, determination, and written findings pursuant to this line 5 paragraph section shall be presumed conclusi ve, unless a line 6 prejudicial abuse of discretion is clearly established. line 7 (2)  “Surplus land” includes land held in the Community line 8 Redevelopment Property Trust Fund pursuant to Section 34191.4 line 9 of the Health and Safety Code and land that has been designated line 10 in the long-range property management plan appro ved by the line 11 Department of Finance pursuant to Section 34191.5 of the Health line 12 and Safety Code, either for sale or for future de velopment, but line 13 does not include any specific disposal of land to an identified entity line 14 described in the plan.
line 15 (c)  (1)  Except as pro vided in paragraph (2), “agenc y’s use” line 16 shall include, b ut not be limited to, land that is being used, is line 17 planned to be used pursuant to a written plan adopted by the local line 18 agency’s governing board for, or is disposed to support pursuant line 19 to subparagraph (B) of paragraph (2) agency work or operations, line 20 including, but not limited to, utility sites, parcels used or planned line 21 to be used for transit or transit-oriented de velopment, property line 22 owned by a port that is used to support logistics uses, airports, line 23 state tidelands, w atershed property , land being used for line 24 conservation purposes, land for demonstration, e xhibition, or line 25 educational purposes related to greenhouse g as emissions, sites line 26 for broadband equipment or wireless f acilities, and b uffer sites line 27 near sensitive governmental uses, including, b ut not limited to, line 28 waste disposal sites, and waste water treatment plants. line 29 (2)  (A)  “Agency’s use” shall not include commercial or line 30 industrial uses or acti vities, including nongo vernmental retail, line 31 entertainment, or office development. Property disposed of for the line 32 sole purpose of investment or generation of re venue shall not be line 33 considered necessary for the agency’s use.
line 34 (B)  In the case of a local agency that is a district, including, but line 35 not limited to, those described in clause (iii), “agency’s use” may line 36 include commercial or industrial uses or acti vities, including line 37 nongovernmental retail, entertainment, or office de velopment or line 38 be for the sole purpose of in vestment or generation of revenue if line 39 the agenc y’s go verning body tak es action in a public meeting line 40 declaring that the use of the site will do one of the following:
97 SB 747 — 9 —

line 1 (i)  Directly further the e xpress purpose of agenc y w ork or line 2 operations.
line 3 (ii)  Be expressly authorized by a statute go verning the local line 4 agency, provided the district complies with Section 54233.5 where line 5 applicable.
line 6 (iii)  For the purposes of this subparagraph, a district includes, line 7 but is not limited to, any of the following:
line 8 (I)  A district, as referenced in paragraph (2) of subdivision (a). line 9 (II)  An infrastructure finance district established pursuant to line 10 Chapter 2.8 (commencing with Section 53395) of Part 1 of Division line 11 2 of Title 5.
line 12 (III)  An enhanced infrastructure financing district established line 13 pursuant to Chapter 2.99 (commencing with Section 53398.50) of line 14 Part 1 of Division 2 of Title 5.
line 15 (IV)  A community re vitalization and in vestment authority line 16 established pursuant to Di vision 4 (commencing with Section line 17 62000) of Title 6.
line 18 (V)  An af fordable housing authority established pursuant to line 19 Division 5 (commencing with Section 62250) of Title 6. line 20 (VI)  A transit village development district established pursuant line 21 to Article 8.5 (commencing with Section 65460) of Chapter 3 of line 22 Division 1 of Title 7.
line 23 (VII)  A climate resilience district established pursuant to line 24 Division 6 (commencing with Section 62300) of Title 6. line 25 (d)  “Dispose” means either of the following:
line 26 (1)  The sale of the surplus land.
line 27 (2)  The entering of a lease of for surplus land land, which is for line 28 a term longer than 35 years, including rene wal options included line 29 in the terms of the initial lease. lease, entered into on or after line 30 January 1, 2024.
line 31 (e)  (1)  Except as pro vided in paragraph (2), “e xempt surplus line 32 land” means any of the following:
line 33 (A)  Surplus land that is transferred pursuant to Section 25539.4 line 34 or 37364.
line 35 (B)  Surplus land that is not contiguous to land owned by a state line 36 or local agenc y that is used for open space or lo w- and line 37 moderate-income housing purposes and meets any of the following line 38 conditions:
line 39 (i)  Is less than 5,000 square feet in area.
97 — 10 — SB 747

line 1 (ii)  Is less than the minimum legal residential building lot size line 2 for the jurisdiction in which the parcel is located, or 5,000 square line 3 feet in area, whichever is less.
line 4 (iii)  Has no record access and is less than 10,000 square feet in line 5 area.
line 6 (iv)  Is sold or leased to an owner of contiguous land. line 7 (C)  Surplus land that a local agency is exchanging for another line 8 property interest necessary for the agency’s use. line 9 (D)  Surplus land that a local agenc y is transferring to another line 10 local, state, or federal agency, or to a third-party intermediary for line 11 future dedication for the receiving agency’s use, or to a federally line 12 recognized California Indian tribe.
line 13 (E)  Surplus land that is a former street, right-of-w ay, parking line 14 lot, or easement, and is con veyed to an o wner of an adjacent line 15 property.
line 16 (F)  A housing de velopment, which may ha ve ancillary line 17 commercial ground floor uses, that restricts 100 percent of the line 18 residential units to persons and families of low or moderate income, line 19 with at least 75 percent of the residential units restricted to lower line 20 income households, as defined in Section 50079.5 of the Health line 21 and Safety Code, with an af fordable sales price or an af fordable line 22 rent, as defined in Sections 50052.5 or 50053 of the Health and line 23 Safety Code, for a minimum of 55 years for rental housing and 45 line 24 years for ownership housing, and in no event shall the maximum line 25 affordable sales price or rent level be higher than 20 percent below line 26 the median mark et rents or sales prices for the neighborhood in line 27 which the site is located.
line 28 (G)  A mixed-use development, which may include more than line 29 one publicly owned parcel, that restricts at least 25 percent of the line 30 residential units to lower income households, as defined in Section line 31 50079.5 of the Health and Safety Code, with an af fordable sales line 32 price or an af fordable rent, as defined in Sections 50052.5 and line 33 50053 of the Health and Safety Code, for a minimum of 55 years line 34 for rental housing and 45 years for ownership housing. line 35 (H)  Surplus land that is subject to v alid legal restrictions that line 36 are not imposed by the local agency and that would make housing line 37 prohibited, unless there is a feasible method to satisf actorily line 38 mitigate or avoid the prohibition on the site.
line 39 (i)  Valid legal restrictions include, but are not limited to, all of line 40 the following:
97 SB 747 — 11 —

line 1 (I)  Existing constraints under o wnership rights or contractual line 2 obligations that prevent the use of the property for housing. line 3 (II)  Conservation or other easements or encumbrances that line 4 prevent housing development.
line 5 (III)  Existing leases, or other contractual oblig ations or line 6 restrictions.
line 7 (IV)  A requirement for voter approval to transfer the property. line 8 (ii)  Feasible methods to mitigate or avoid a valid legal restriction line 9 on the site do not include a requirement that the local agenc y line 10 acquire additional property rights or property interests belonging line 11 to third parties.
line 12 (iii)  An e xisting nonresidential land use designation on the line 13 surplus land is not a le gal restriction that w ould make housing line 14 prohibited for purposes of this subparagraph.
line 15 (iv)  Prior to disposition of the surplus land, the local agenc y line 16 includes shall include in its written findings adopted pursuant to line 17 subdivision (b) the relevant legal restrictions as described in this line 18 subparagraph.
line 19 (I)  Surplus land that was granted by the state in trust to a local line 20 agency or that was acquired by the local agency for trust purposes line 21 by purchase or e xchange, and for which disposal of the land is line 22 authorized or required subject to conditions established by statute. line 23 (J)  Land that is subject to Sections 17388, 17515, 17536, 81192, line 24 81397, 81399, 81420, and 81422 of the Education Code and Part line 25 14 (commencing with Section 53570) of Division 31 of the Health line 26 and Safety Code, unless compliance with this article is expressly line 27 required.
line 28 (K)  Surplus land that is a former military base that was conveyed line 29 by the federal go vernment to a local agenc y, and is subject to line 30 Article 8 (commencing with Section 33492.125) of Chapter 4.5 line 31 of Part 1 of Division 24 of the Health and Safety Code, provided line 32 that all of the following conditions are met:
line 33 (i)  The former military base has an aggregate area greater than line 34 five acres, is e xpected to include a mix of residential and line 35 nonresidential uses, and is expected to include no fewer than 1,400 line 36 residential units upon completion of development or redevelopment line 37 of the former military base.
line 38 (ii)  The affordability requirements for residential units shall be line 39 governed by a settlement agreement entered into prior to September line 40 1, 2020. Furthermore, at least 25 percent of the initial 1,400 97 — 12 — SB 747

line 1 residential units de veloped shall be restricted to lo wer income line 2 households, as defined in Section 50079.5 of the Health and Safety line 3 Code, with an af fordable sales price or an af fordable rent, as line 4 defined in Sections 50052.5 and 50053 of the Health and Safety line 5 Code, for a minimum of 55 years for rental housing and 45 years line 6 for ownership housing.
line 7 (iii)  Prior to disposition of the surplus land, the agenc y adopts line 8 written findings that the land is e xempt surplus land pursuant to line 9 this subparagraph.
line 10 (iv)  Prior to the disposition of the surplus land, the recipient has line 11 negotiated a project labor agreement consistent with the local line 12 agency’s project stabilization agreement resolution, as adopted on line 13 February 2, 2021, and an y succeeding ordinance, resolution, or line 14 policy, regardless of the length of the agreement between the local line 15 agency and the recipient.
line 16 (v)  The agenc y includes in the annual report required by line 17 paragraph (2) of subdi vision (a) of Section 65400 the status of line 18 development of residential units on the former military base, line 19 including the total number of residential units that ha ve been line 20 permitted and what percentage of those residential units are line 21 restricted for persons and families of low or moderate income, as line 22 defined in Section 50093 of the Health and Safety Code, or lower line 23 income households, as defined in Section 50079.5 of the Health line 24 and Safety Code.
line 25 A violation of this subparagraph is subject to the penalties line 26 described in Section 54230.5. Those penalties are in addition to line 27 any remedy a court may order for violation of this subparagraph line 28 or the settlement agreement.
line 29 (L)  Real property that is used by a district for agenc y’s use line 30 expressly authorized in subdivision (c).
line 31 (M)  Land that has been transferred before June 30, 2019, by the line 32 state to a local agenc y pursuant to Section 32667 of the Streets line 33 and Highways Code and has a minimum planned residential density line 34 of at least 100 dwelling units per acre, and includes 100 or more line 35 residential units that are restricted to persons and families of low line 36 or moderate income, as defined in Section 50093 of the Health line 37 and Safety Code, with an af fordable sales price or an af fordable line 38 rent, as defined in Sections 50052.5 and 50053 of the Health and line 39 Safety Code, for a minimum of 55 years for rental housing and 45 line 40 years for ownership housing. For purposes of this subparagraph, 97 SB 747 — 13 —

line 1 not more than 20 percent of the affordable units may be restricted line 2 to persons and families of moderate income and at least 80 percent line 3 of the affordable units must be restricted to persons and f amilies line 4 of lower income as defined in Section 50079.5 of the Health and line 5 Safety Code.
line 6 (N)  Land that is jointly de veloped or used for a joint line 7 development as authorized in Section 99420 of the Public Utilities line 8 Code.
line 9 (O)  Land that was purchased using federal funds and for which line 10 a federal agenc y has authorized the use of the land for specific line 11 purposes.
line 12 (P)  Land that is transferred to a community land trust, and all line 13 of the following conditions are met:
line 14 (i)  The property is being or will be de veloped or rehabilitated line 15 as any of the following:
line 16 (I)  An owner-occupied single-family dwelling.
line 17 (II)  An owner-occupied unit in a multifamily dwelling. line 18 (III)  A member -occupied unit in a limited equity housing line 19 cooperative.
line 20 (IV)  A rental housing development.
line 21 (ii)  Improvements on the property are or will be a vailable for line 22 use and ownership or for rent by qualified persons, as defined in line 23 paragraph (6) of subdivision (c) of Section 214.18 of the Revenue line 24 and Taxation Code.
line 25 (iii)  (I)  A deed restriction or other instrument, requiring a line 26 contract or contracts serving as an enforceable restriction on the line 27 sale or resale value of owner-occupied units or on the affordability line 28 of rental units is recorded on or before the lien date following the line 29 acquisition of the property by the community land trust. line 30 (II)  For purposes of this clause, the following definitions apply:
line 31 (ia)  “A contract or contracts serving as an enforceable restriction line 32 on the sale or resale v alue of o wner-occupied units” means a line 33 contract described in paragraph (11) of subdivision (a) of Section line 34 402.1 of the Revenue and Taxation Code.
line 35 (ib)  “A contract or contracts serving as an enforceable restriction line 36 on the af fordability of rental units” means an enforceable and line 37 verifiable agreement with a public agenc y, a recorded deed line 38 restriction, or other legal document described in subparagraph (A) line 39 of paragraph (2) of subdivision (g) of Section 214 of the Revenue line 40 and Taxation Code.
97 — 14 — SB 747

line 1 (iv)  A copy of the deed restriction or other instrument shall be line 2 provided to the assessor.
line 3 (Q)  Additional categories of exempt surplus land as determined line 4 by the department, including, but not limited to, sites that are not line 5 suitable for housing.
line 6 (2)  Notwithstanding paragraph (1), a written notice of the line 7 availability of surplus land for open-space purposes shall be sent line 8 to the entities described in subdivision (b) of Section 54222 prior line 9 to disposing of the surplus land, provided the land does not meet line 10 the criteria in subparagraph (I) of paragraph (1), if the land is any line 11 of the following:
line 12 (A)  Within a coastal zone.
line 13 (B)  Adjacent to a historical unit of the State Parks System. state line 14 parks system.
line 15 (C)  Listed on, or determined by the State Office of Historic line 16 Preservation to be eligible for , the National Re gister of Historic line 17 Places.
line 18 (D)  Within the Lake Tahoe region as defined in Section 66905.5. line 19 (f)  “Open-space purposes” means the use of land for public line 20 recreation, enjoyment of scenic beauty, or conservation or use of line 21 natural resources.
line 22 (g)  “Persons and families of low or moderate income” has the line 23 same meaning as pro vided in Section 50093 of the Health and line 24 Safety Code.
line 25 SEC. 5. Section 54222 of the Government Code is amended line 26 to read:
line 27 54222. Except as provided in Division 23 (commencing with line 28 Section 33000) of the Public Resources Code, an y local agenc y line 29 disposing of surplus land shall send, prior to disposing of that line 30 property or participating in negotiations to dispose of that property line 31 with a prospecti ve transferee other than an af fordable housing line 32 developer proposing to develop an affordable housing project on line 33 the site that meets or exceeds the 25-percent affordability threshold line 34 described in Section 54222.5, a written notice of a vailability of line 35 the property to all of the following:
line 36 (a)  (1)  A written notice of a vailability for the purpose of line 37 developing low- and moderate-income housing shall be sent to line 38 any local public entity, as defined in Section 50079 of the Health line 39 and Safety Code, within whose jurisdiction the surplus land is line 40 located. Housing sponsors, as defined by Section 50074 of the 97 SB 747 — 15 —

line 1 Health and Safety Code, that ha ve notified the Department of line 2 Housing and Community Development of their interest in surplus line 3 land shall be sent a notice of a vailability of surplus land for the line 4 purpose of de veloping low- and moderate-income housing. All line 5 notices shall be sent by electronic mail, or by certified mail, and line 6 shall include the location and a description of the property. line 7 (2)  The Department of Housing and Community Development line 8 shall maintain on its internet website an up-to-date listing of all line 9 notices of availability throughout the state.
line 10 (b)  A written notice of availability for open-space purposes shall line 11 be sent:
line 12 (1)  To an y park or recreation department of an y city within line 13 which the land may be situated.
line 14 (2)  To any park or recreation department of the county within line 15 which the land is situated.
line 16 (3)  To any regional park authority ha ving jurisdiction within line 17 the area in which the land is situated.
line 18 (4)  To the State Resources Agency or an y agenc y that may line 19 succeed to its powers.
line 20 (c)  A written notice of a vailability of land suitable for school line 21 facilities construction or use by a school district for open-space line 22 purposes shall be sent to any school district in whose jurisdiction line 23 the land is located.
line 24 (d)  A written notice of availability for the purpose of developing line 25 property located within an infill opportunity zone designated line 26 pursuant to Section 65088.4 or within an area covered by a transit line 27 village plan adopted pursuant to the Transit Village Development line 28 Planning Act of 1994 (Article 8.5 (commencing with Section line 29 65460) of Chapter 3 of Division 1 of Title 7) shall be sent to any line 30 county, city , city and county , successor agenc y to a former line 31 redevelopment agency, public transportation agenc y, or housing line 32 authority within whose jurisdiction the surplus land is located. line 33 (e)  The entity or association desiring to purchase or lease the line 34 surplus land for an y of the purposes authorized by this section line 35 shall notify in writing the disposing agenc y of its interest in line 36 purchasing or leasing the land within 60 days after the agenc y’s line 37 notice of a vailability of the land is sent via certified mail or line 38 provided via electronic mail.
line 39 (f)  For the purposes of this section, “participating in line 40 negotiations” does not include the commissioning of appraisals, 97 — 16 — SB 747

line 1 due diligence prior to disposition, discussions with brokers or real line 2 estate agents not representing a potential b uyer, or other studies line 3 to determine value or best use of land, issuance of a request for line 4 qualifications, development of marketing materials, or discussions line 5 conducted exclusively among local agency employees and elected line 6 officials.
line 7 SEC. 6. Section 54226 of the Government Code is amended line 8 to read:
line 9 54226. (a)  This article shall not be interpreted to limit the line 10 power of any local agency to sell or lease surplus land at fair market line 11 value or at less than fair market value, and any sale or lease at or line 12 less than fair market value consistent with this article shall not be line 13 construed as inconsistent with an agency’s purpose. line 14 (b)  This article shall not prevent a local agency from obtaining line 15 fair market value for the disposition of surplus land consistent with line 16 this section.
line 17 (c)  This article shall not be interpreted to limit a local agency’s line 18 authority or discretion to approve land use, zoning, or entitlement line 19 decisions in connection with the surplus land.
line 20 (d)  This article shall not be interpreted to require a local agency line 21 to dispose of land that is determined to be surplus. line 22 (e)  This article shall not apply to properties that a local agency line 23 proposes to sell, lease, or otherwise transfer pursuant to P art 4 line 24 (commencing with Section 52200) of Division 1 of Title 5. line 25 (f)  This article shall not apply when it conflicts with any other line 26 provision or authority of statutory law.
line 27 SEC. 7. Section 54230 of the Government Code is amended line 28 to read:
line 29 54230. (a)  (1)  On or before December 31 of each year, each line 30 county and each city shall make a central inventory of all surplus line 31 land, as defined in subdivision (b) of Section 54221, and all lands line 32 in excess of its foreseeable needs, if an y, identified pursuant to line 33 Section 50569, located in all urbanized areas and urban clusters, line 34 as designated by the United States Census Bureau, within the line 35 jurisdiction of the county or city that the county or city or an y of line 36 its departments, agencies, or authorities owns or controls. line 37 (2)  (A)  Subject to subparagraph (C), each county and each city line 38 shall make a description of each parcel described in paragraph (1) line 39 and the present use of the parcel a matter of public record and shall line 40 report this information to the Department of Housing and 97 SB 747 — 17 —

line 1 Community De velopment no later than April 1 of each year , line 2 beginning April 1, 2021, in a form prescribed by the department, line 3 as part of its annual progress report submitted pursuant to paragraph line 4 (2) of subdivision (a) of Section 65400.
line 5 (B)  The information reported pursuant to this paragraph shall line 6 include, b ut not be limited to, the follo wing information with line 7 respect to each site:
line 8 (i)  Street address, or similar location information. line 9 (ii)  Assessor’s parcel number.
line 10 (iii)  Existing use.
line 11 (iv)  Whether the site is surplus land or exempt surplus land. line 12 (v)  Size in acres.
line 13 (C)  The Department of Housing and Community Development line 14 may, in its discretion, delay implementation of this paragraph until line 15 April 1, 2022.
line 16 (3)  Each county and each city, upon request, shall provide a list line 17 of its surplus land and excess surplus land to an individual, limited line 18 dividend corporation, housing corporation, or nonprofit corporation line 19 without charge.
line 20 (b)  The Department of Housing and Community Development line 21 shall provide the information reported to it by a city or county line 22 pursuant to paragraph (2) of subdivision (a) to the Department of line 23 General Services for inclusion in a digitized in ventory of all line 24 state-owned parcels that are in excess of state needs. line 25 (c)  The Department of Housing and Community Development line 26 may re view, adopt, amend, and repeal standards, forms, and line 27 definitions in order to implement this section. Any standards, line 28 forms, or definitions adopted, amended, or repealed pursuant to line 29 this subdivision are hereby exempt from the rulemaking provisions line 30 of the Administrative Procedure Act (Chapter 3.5 (commencing line 31 with Section 11340) of Part 1 of Division 3 of Title 2). line 32 SEC. 8. Section 54230.5 of the Government Code is amended line 33 to read:
line 34 54230.5. (a)  (1)  A local agenc y that disposes of land in line 35 violation of this article after recei ving a notification from the line 36 Department of Housing and Community De velopment pursuant line 37 to subdivision (b) that the local agency is in violation of this article line 38 shall be liable for a penalty of 30 percent of the final sale price of line 39 the land sold in violation of this article for a first violation and 50 line 40 percent for any subsequent violation. An entity identified in Section 97 — 18 — SB 747

line 1 54222 or a person who w ould ha ve been eligible to apply for line 2 residency in an y af fordable housing de veloped or a housing line 3 organization as defined in Section 65589.5, or an y beneficially line 4 interested person or entity may bring an action to enforce this line 5 section. Upon receiving a notice of violation from the department, line 6 a local agency that proceeds with the disposal shall consider the line 7 matter at a public meeting within 30 days. F ollowing the public line 8 meeting, a local agenc y shall have 60 days to cure or correct an line 9 alleged violation before an action may be brought to enforce this line 10 section, unless the local agency disposes of the land before curing line 11 or correcting the alle ged violation, or the department deems the line 12 alleged violation not to be a violation in less than 60 days. line 13 (2)  A penalty assessed pursuant to this subdivision shall, except line 14 as otherwise provided, be deposited into a local housing trust fund. line 15 The local agency may elect to instead deposit the penalty moneys line 16 into the Building Homes and Jobs Trust Fund or the Housing line 17 Rehabilitation Loan Fund. Penalties shall not be paid out of funds line 18 already dedicated to affordable housing, including, but not limited line 19 to, Lo w and Moderate Income Housing Asset Funds, funds line 20 dedicated to housing for v ery low, low-, and moderate-income line 21 households, and federal HOME Investment Partnerships Program line 22 and Community De velopment Block Grant Program funds. The line 23 local agenc y shall commit and e xpend the penalty mone ys line 24 deposited into the local housing trust fund within fiv e years of line 25 deposit for the sole purpose of financing newly constructed housing line 26 units that are affordable to extremely low, very low, or low-income line 27 households.
line 28 (3)  Five years after deposit of the penalty moneys into the local line 29 housing trust fund, if the funds have not been expended, the funds line 30 shall revert to the state and be deposited in the Building Homes line 31 and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for line 32 the sole purpose of financing ne wly constructed housing units line 33 located in the same jurisdiction as the surplus land and that are line 34 affordable to extremely low, very low, or low-income households. line 35 Expenditure of an y penalty mone ys deposited into the Building line 36 Homes and Jobs Trust Fund or the Housing Rehabilitation Loan line 37 Fund pursuant to this subdivision shall be subject to appropriation line 38 by the Legislature.
line 39 (b)  (1)  Prior to agreeing to terms for the disposition of surplus line 40 land, a local agency shall provide to the Department of Housing 97 SB 747 — 19 —

line 1 and Community De velopment a description of the notices of line 2 availability sent, and negotiations conducted with any responding line 3 entities, in regard to the disposal of the parcel of surplus land and line 4 a cop y of an y restrictions to be recorded ag ainst the property line 5 pursuant to Section 54233 or 54233.5, whichever is applicable, in line 6 a form prescribed by the Department of Housing and Community line 7 Development. A local agency may submit this information after line 8 it has sent notices of a vailability required by Section 54222 and line 9 concluded ne gotiations with an y responding agencies. A local line 10 agency shall not be liable for the penalty imposed by subdivision line 11 (a) if the Department of Housing and Community De velopment line 12 does not notify the agenc y that the agenc y is in violation of this line 13 article within 30 days of receiving the description. line 14 (2)  The Department of Housing and Community Development line 15 shall do all of the following:
line 16 (A)  Make a vailable educational resources and materials that line 17 inform each agenc y of its oblig ations under this article and that line 18 provide guidance on how to comply with its provisions. line 19 (B)  Review information submitted pursuant to paragraph (1). line 20 (C)  Submit written findings to the local agency within 30 days line 21 of receipt of the description required by paragraph (1) from the line 22 local agency if the proposed disposal of the land will violate this line 23 article.
line 24 (D)  Review, adopt, amend, or repeal guidelines to establish line 25 uniform standards to implement this section. The guidelines line 26 adopted pursuant to this subdivision are not subject to Chapter 3.5 line 27 (commencing with Section 11340) of Part 1 of Division 3 of Title line 28 2. Prior to adopting, amending, or repealing guidelines, the line 29 department shall do all both of the following:
line 30 (i)  Solicit public comments on the proposed guidelines for at line 31 least 30 days.
line 32 (ii)  Consider and respond to public comments in writing. line 33 (E)  Provide the local agency reasonable time, but not less than line 34 60 days, to respond to the findings before taking any other action line 35 authorized by this section.
line 36 (F)  Provide the local agency an appeals process that is overseen line 37 by an independent trier of fact to overturn an adverse action taken line 38 by the department authorized by this section af fecting the local line 39 agency that is overseen by an independent trier of fact. agency. 97 — 20 — SB 747

line 1 (3)  (A)  The local agency shall consider findings made by the line 2 Department of Housing and Community De velopment pursuant line 3 to subparagraph (B) of paragraph (2) and shall do one of the line 4 following:
line 5 (i)  Correct any issues identified by the Department of Housing line 6 and Community Development.
line 7 (ii)  Provide written findings e xplaining the reason its process line 8 for disposing of surplus land complies with this article and line 9 addressing the Department of Housing and Community line 10 Development’s findings.
line 11 (B)  If the local agency does not correct issues identified by the line 12 Department of Housing and Community De velopment, does not line 13 provide findings explaining the reason its process for disposing of line 14 surplus land complies with this article and addressing the line 15 Department of Housing and Community Development’s findings, line 16 or if the Department of Housing and Community De velopment line 17 finds that the local agenc y’s findings are deficient in addressing line 18 the issues identified by the Department of Housing and Community line 19 Development, the Department of Housing and Community line 20 Development shall notify the local agenc y, and may notify the line 21 Attorney General, that the local agency is in violation of this article. line 22 (c)  The Department of Housing and Community Development line 23 shall implement the changes in this section made by the act adding line 24 this subdivision commencing on January 1, 2021. line 25 (d)  Notwithstanding subdivision (c), this section shall not be line 26 construed to limit an y other remedies authorized under la w to line 27 enforce this article including public records act requests pursuant line 28 to Division 10 (commencing with Section 7920.000) of Title 1. line 29 SEC. 9. Section 54234 of the Government Code is amended line 30 to read:
line 31 54234. (a)  (1)  If a local agenc y, as of September 30, 2019, line 32 has entered into an e xclusive ne gotiating agreement or le gally line 33 binding agreement to dispose of property , the pro visions of this line 34 article as it e xisted on December 31, 2019, shall apply , without line 35 regard to the changes made to this article by Chapter 664 of the line 36 Statutes of 2019, and all subsequent amendments to this article, line 37 to the disposition of the property to the party that had entered into line 38 such agreement or its successors or assigns, pro vided the line 39 disposition is completed by either of the follo wing dates, as line 40 applicable:
97 SB 747 — 21 —

line 1 (A)  December 31, 2022, unless either of the conditions described line 2 in subparagraph (B) apply.
line 3 (B)  (i)  December 31, 2024, if the property is located in a charter line 4 city with a population of over 2,000,000 persons and a local agency line 5 has an option agreement duly authorized by the local agenc y’s line 6 governing body to purchase the property from the former line 7 redevelopment agency.
line 8 (ii)  December 31, 2025, if the property is located in a city or line 9 county which entered into a legally binding agreement to dispose line 10 of the property prior to September 30, 2019, and the transferee has line 11 exercised one or more unilateral e xtension options which were a line 12 component of the original agreement.
line 13 (2)   If a local agenc y, as of September 30, 2019, has entered line 14 into an e xclusive ne gotiating agreement or le gally binding line 15 agreement to dispose of property related to the Metro North line 16 Hollywood Joint Development Project, the provisions of this article line 17 as it existed on December 31, 2019, shall apply, without regard to line 18 the changes made to this article by Chapter 664 of the Statutes of line 19 2019, and all subsequent amendments to this article, to the line 20 disposition of the property to the party that had entered into such line 21 agreement or its successors or assigns, provided the disposition is line 22 completed not later than December 31, 2024.
line 23 (3)   If a local agenc y, as of September 30, 2019, has issued a line 24 competitive request for proposals for the development of property line 25 that includes at least 100 residential units and at least 25 percent line 26 of the total residential units are restricted to lo wer income line 27 households, as defined in Section 50079.5 of the Health and Safety line 28 Code, with an af fordable housing cost or an af fordable rent, as line 29 defined in Sections 50052.5 and 50053 of the Health and Safety line 30 Code, for a minimum of 55 years for rental housing and 45 years line 31 for ownership housing, the provisions of this article as it e xisted line 32 on December 31, 2019, shall apply, without regard to the changes line 33 made to this article by Chapter 664 of the Statutes of 2019, and line 34 all subsequent amendments to this article, to the disposition of the line 35 property to the party that participated in the competiti ve request line 36 for proposals process, or the party’s successors or assigns, provided line 37 a disposition and development agreement for the property is entered line 38 into not later than December 31, 2024. A joint de velopment line 39 involving multiple parcels shall meet the requirements of this line 40 paragraph so long as there w as a single competiti ve request for 97 — 22 — SB 747

line 1 proposals process and the joint de velopment otherwise meets all line 2 the requirements listed in this paragraph. A “disposition and line 3 development agreement” means an agreement between the line 4 developer and the local agency that binds the developer to construct line 5 a specific de velopment and the local agenc y to dispose of the line 6 property if permits and other entitlements for the project are line 7 obtained. This paragraph shall not apply to land held in the line 8 Community Rede velopment Property Trust Fund pursuant to line 9 Section 34191.4 of the Health and Safety Code, or that has been line 10 designated in a long-range property management plan pursuant to line 11 Section 34191.5 of the Health and Safety Code. If the property is line 12 not disposed of pursuant to a qualifying disposition and line 13 development agreement before March 31, 2026, or if no disposition line 14 and development agreement is entered into before December 31, line 15 2024, then future negotiations for and disposition of the property line 16 shall be subject to the provisions of this article. line 17 (4)   The dates specified in paragraphs (1) to (3), inclusi ve, by line 18 which the disposition of property must be completed shall be line 19 extended if the disposition of property, the local agency’s right or line 20 ability to dispose of the property , or a de velopment project for line 21 which the property is proposed to be transferred, is the subject of line 22 judicial challenge, by petition for writ of mandate, complaint for line 23 declaratory relief or otherwise, to the date that is six months line 24 following the final conclusion of such litigation. line 25 (b)  (1)  With respect to land held in the Community line 26 Redevelopment Property Trust Fund pursuant to Section 34191.4 line 27 of the Health and Safety Code, or that has been designated in a line 28 long-range property management plan pursuant to Section 34191.5 line 29 of the Health and Safety Code, either for sale or retained for future line 30 development, this article as it e xisted on December 31, 2019, line 31 without regard to the changes made to this article by Chapter 664 line 32 of the Statutes of 2019, and all subsequent amendments to this line 33 article, which tak e effect on January 1, 2020, shall apply to the line 34 disposition of that property if both of the following apply:
line 35 (A)  An e xclusive ne gotiating agreement or le gally binding line 36 agreement for disposition is entered into not later than December line 37 31, 2020.
line 38 (B)  The disposition is completed not later than either of the line 39 following dates, as applicable:
97 SB 747 — 23 —

line 1 (i)  December 31, 2022, unless the conditions described in clause line 2 (ii) or (iii) apply.
line 3 (ii)  December 31, 2024, if the property is located in a charter line 4 city with a population of over 2,000,000 persons and a local agency line 5 has an option agreement duly authorized by the local agenc y’s line 6 governing body to purchase the property from the former line 7 redevelopment agency.
line 8 (iii)  December 31, 2025, if the property is located in a city or line 9 county which entered into a legally binding agreement to dispose line 10 of the property prior to September 30, 2019, and the transferee has line 11 exercised one or more unilateral e xtension options which were a line 12 component of the original agreement.
line 13 (2)  If land described in paragraph (1) is the subject of litigation, line 14 including, but not limited to, litigation challenging the disposition line 15 of such property, the right or ability to dispose of the property, or line 16 a development project for which such property is proposed to be line 17 transferred, the dates specified in paragraph (1) shall be extended line 18 to the date that is six months following the final conclusion of such line 19 litigation.
line 20 (c)  Nothing in this section shall authorize or excuse any violation line 21 of the provisions of this article as it existed on December 31, 2019, line 22 in the disposition of any property to which such provisions apply line 23 pursuant to subdivision (a) or (b).
line 24 SEC. 10. If the Commission on State Mandates determines line 25 that this act contains costs mandated by the state, reimbursement line 26 to local agencies and school districts for those costs shall be made line 27 pursuant to Part 7 (commencing with Section 17500) of Division line 28 4 of Title 2 of the Government Code.

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97 — 24 — SB 747

AMENDED IN ASSEMBLY MARCH 14, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 1175
Introduced by Assembly Member Quirk-Silva
(Principal coauthor: Senator Nguyen)
February 16, 2023
An act to amend Section 5273 of the Business and Professions Code, relating to outdoor advertising.
legislative counsel’s digest
AB 1175, as amended, Quirk-Silva. Outdoor advertising displays:
redevelopment agency project areas.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an adv ertising display , as defined, within view of public highways. The act regulates the placement of an of f-premises advertising display along highw ays that generally advertises business conducted or services rendered or goods produced or sold at a location other than the property where the display is located.

The act does not apply to an on-premises advertising display, which generally advertises business conducted or services rendered or goods produced or sold at the location where the display is located. Until January 1, 2023, the act treats an of f-premises adv ertising display developed as part of and within the boundary limits of a redevelopment agency project, as those boundaries existed on December 29, 2011, as an on-premises advertising display if it meets specified certain criteria for good cause. cause, which includes, among other s, that ther e has been no violation of certain provisions by the owner or operator of the advertising display, as specified.

From

98 This bill would alter that good cause criteria to instead require that the department has not made a final determination of a violation of the same pr ovisions, whether by a final administr ative decision or by operation of law, by the owner or operator of the advertising display.

From January 1, 2024, to January 1, 2025, this the bill would allow the applicable city , county, or city and county to request from the department a 10-year extension for treating a display in a redevelopment agency project, as described abo ve, as an on-premises display if the display meets the criteria for a finding of good cause, w as in use on December 31, 2022, and complies with specified provisions of the act, including, but not limited to, the act’s licensing and zoning requirements.

The bill would require the department to provide the extension upon a finding of good cause.

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 5273 of the Business and Professions line 2 Code is amended to read:
line 3 5273. (a)  Notwithstanding the dissolution of a state line 4 redevelopment agency, and subject to subdivision (b), for purposes line 5 of this chapter, an advertising display advertising the businesses line 6 and activities developed within the boundary limits of, and as a line 7 part of, an indi vidual rede velopment agenc y project, as those line 8 boundaries existed on December 29, 2011, and which was in use line 9 as of December 31, 2022, may continue to exist and be considered line 10 an on-premises display, as defined in Section 5490, and subject to line 11 the provisions of Article 4 (commencing with Section 5300) and line 12 Sections 5400 to 5404, inclusive, if the advertising display meets line 13 all of the following conditions:
line 14 (1)  The advertising display is located within the boundary limits line 15 of the former project.
line 16 (2)  The advertising display was constructed on or before January line 17 1, 2012.
line 18 (3)  The adv ertising display does not cause the reduction of line 19 federal aid highw ay funds pro vided pursuant to Section 131 of line 20 Title 23 of the United States Code. If an adv ertising display line 21 authorized under this section is subject to a notice from the United line 22 States Department of Transportation, the Federal Highw ay 98 — 2 — AB 1175

line 1 Administration, or any other applicable federal agency to the state line 2 that the operation of that display will result in the reduction of line 3 federal aid highway funds as provided in Section 131 of Title 23 line 4 of the United States Code, the display o wner or operator shall line 5 remove all advertising copy from the display within 60 days after line 6 the date the state notifies the owner or operator, and the applicable line 7 city, county, or city and county , by certified mail, of the receipt line 8 of the federal notice. F ailure to remo ve the adv ertising cop y line 9 pursuant to this paragraph shall result in a ci vil fine, imposed by line 10 the California Department of Transportation, of ten thousand line 11 dollars ($10,000) per day until the adv ertising copy is removed. line 12 The department shall not assume any liability in connection with line 13 the cessation of operation or removal of an advertising display or line 14 advertising copy pursuant to this paragraph. If the name of the line 15 owner or operator of the display is not indicated on the display , line 16 the state is only required to send the notice to the applicable city, line 17 county, or city and county.
line 18 (b)  An adv ertising display described in subdi vision (a) may line 19 remain until January 1, 2023, after which date the display shall be line 20 removed, unless it otherwise qualifies as a la wful adv ertising line 21 display pursuant to this chapter , without the payment of an y line 22 compensation to the owner or operator. From January 1, 2024, to line 23 January 1, 2025, the applicable city , county, or city and county line 24 may for good cause request from the department a 10-year line 25 extension that would treat the display as an on-premises display line 26 pursuant to subdi vision (a). The department shall pro vide the line 27 extension upon a finding of good cause. “Good cause” for these line 28 purposes means all of the follo wing are satisfied: (1) there has line 29 been a finding by the applicable city , county, or city and county line 30 that the adv ertising display has had a positi ve economic impact line 31 on the redevelopment project area and pro vides a public benefit, line 32 (2) there have been no violations has been no final determination, line 33 either by a final administr ative decision or by oper ation of law, line 34 of any violation by the display o wner or operator of this section line 35 or of any applicable illumination standards in the previous 10 years line 36 that have has not been corrected within 30 days of the date of line 37 mailing of a violation notice to the o wner or operator by the line 38 department, and (3) there has been compliance by the o wner and line 39 operator with all other standards adopted by the applicable city , line 40 county, or city and county, or by the department. 98 AB 1175 — 3 —

line 1 (c)  The applicable city , county , or city and county shall be line 2 responsible for ensuring that an adv ertising display is consistent line 3 with this section and provides a public benefit. This provision shall line 4 not be construed to preclude an y enforcement authority of the line 5 department under this chapter.
line 6 (d)  The applicable city, county, or city and county shall annually, line 7 by December 31, certify to the department that the adv ertising line 8 copy of the adv ertising display is adv ertising b usinesses or line 9 activities operating within the boundaries of the former line 10 redevelopment project area and that at least 10 percent of the line 11 advertising copy, up to a maximum of 100 square feet, is used to line 12 display the address or location or locations of the b usiness or line 13 activity, or to identify the route to the b usiness or acti vity from line 14 the nearest free way of framp. of f r amp. The department may line 15 independently re view compliance with this certification. An line 16 advertising display subject to this section shall be removed if it is line 17 in violation of this subdi vision more than three times within a line 18 10-year period and the violation has not been corrected within 30 line 19 days of the date of mailing of a violation notice to the o wner or line 20 operator by the department.
line 21 (e)  The applicable city, county, or city and county authorizing line 22 an advertising display placed pursuant to this section shall ha ve line 23 primary responsibility for ensuring that the display remains in line 24 conformance with all provisions of this section. If the city, county, line 25 or city and county f ails to do so within 30 days of the date of line 26 mailing of a notice to the city , county, or city and county by the line 27 department, the city , county, or city and county shall hold the line 28 department harmless and indemnify the department for all costs line 29 incurred by the department to ensure compliance with this section line 30 or to defend actions challenging the authorization of displays line 31 pursuant to this section.

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98 — 4 — AB 1175

AMENDED IN SENATE MARCH 21, 2023
SENATE BILL No. 222
Introduced by Senator Nguyen
January 19, 2023
An act relating to v ehicles. An act to add Section 5252.1 to the Business and Professions Code, relating to outdoor advertising. legislative counsel’s digest
SB 222, as amended, Nguyen. Electric bicycles. Outdoor advertising:
applications.

Existing law, the Outdoor Advertising Act, provides for the regulation by the Department of Transportation of an advertising display , as defined, within vie w of public highways. Existing law r equires the director to prescribe the form of all applications, licenses, permits, and other appurtenant written matter.

This bill would r equire the department to consider the appr oval or denial of a pending outdoor advertising application before construction on an applicable highway project is completed.

Existing law generally re gulates the operation of bic ycles, electric bicycles, motorized scooters, and electrically motorized boards. Existing law allows local authorities to re gulate the re gistration, parking, and operation of bicycles and motorized scooters in a manner that does not conflict with state law.

This bill would declare the intent of the Legislature to enact legislation relating to electric bicycles.

Vote: majority. Appropriation: no. Fiscal committee: no yes.​ State-mandated local program: no.​

98 The people of the State of California do enact as follows:
line 1 SECTION 1. Section 5252.1 is added to the Business and line 2 Professions Code, to read:
line 3 5252.1. The department shall consider the approval or denial line 4 of a pending outdoor advertising application before construction line 5 on an applicable highway project is completed.
line 6 SECTION 1. It is the intent of the Le gislature to enact line 7 legislation relating to electric bicycles.

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98 — 2 — SB 222

AMENDED IN ASSEMBLY APRIL 12, 2023
AMENDED IN ASSEMBLY MARCH 16, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 68
Introduced by Assembly Member Ward
December 8, 2022
An act to amend Section 65585 of, to add Sections 65040.18, 65914.7.5, and 66425.5 to, and to add Chapter 4.3.1 (commencing with Section 65918.5) to Di vision 1 of Title 7 of, the Go vernment Code, relating to land use.
legislative counsel’s digest
AB 68, as amended, Ward. Land use: streamlined housing approvals:
density, subdivision, and utility approvals.

Existing law, the Planning and Zoning Law, authorizes a development proponent to submit an application for a multif amily housing development that is subject to a streamlined, ministerial appro val process, as provided, and not subject to a conditional use permit, if the development satisfies specified objective planning standards.

This bill w ould require a local go vernment to appro ve a proposed housing development pursuant to a streamlined, ministerial appro val process if the development meets certain objective planning standards, including, but not limited to, a requirement that the proposed parcel for the development be a climate-smart parcel, as described, or be included in the applicable region’s sustainable communities strategy as a priority development area. The bill w ould set forth procedures for appro ving these developments and w ould set forth v arious limitations for these developments. The bill w ould authorize the Department of Housing

97 and Community De velopment to re view, adopt, amend, and repeal guidelines, rules, and re gulations to implement uniform standards or criteria that supplement or clarify the terms, references, or standards set forth by this process.

Existing law requires the department to notify a city, county, or city and county, and authorizes the department to notify the office of the Attorney General, that the city, county, or city and county is in violation of state la w if the department finds that the housing element or an amendment to the housing element does not substantially comply with specified provisions of the Planning and Zoning Law, or that the local government has taken action in violation of specified provisions of law relating to housing, including, among others, the Housing Accountability Act, the Density Bonus Law, and the Housing Crisis Act of 2019.

This bill would add the streamlining procedures added by the bill to the list of laws subject to this notification requirement.

The Planning and Zoning La w requires a city or county to adopt a general plan for land use de velopment within its boundaries that includes, among other things, a housing element. Existing law also sets forth various procedures related to land use actions and utility service in local jurisdictions, including, b ut not limited to, a requirement that a tentative a final map be made for certain housing projects, including all subdivisions creating 5 or more parcels.

This bill would prohibit a county, or city if certain conditions are met, from increasing the planned density on climate resilient lands, as defined, from appro ving any tentative, final, or parcel maps for the subdivision of property within climate risk lands or climate refugia lands, as defined, and from appro ving an extension of water or sewer services on climate resilient lands unless specified planning requirements or conditions are met. The bill w ould require, as part of those requirements or conditions, the county or city to make certain findings that are confirmed by the Office of Planning and Research. The bill would set forth procedures for requesting those findings from the office.

The bill would make conforming changes.

By imposing additional duties on local officials, the bill would impose a state-mandated local program.

The bill w ould include findings that changes proposed by this bill address a matter of state wide concern rather than a municipal af fair and, therefore, apply to all cities, including charter cities. 97 — 2 — AB 68

The California Constitution requires the state to reimb urse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65040.18 is added to the Government line 2 Code, to read:
line 3 65040.18. (a)  A county may submit an application to the office, line 4 in the form and manner prescribed by the office, for the following line 5 purposes:
line 6 (1)  Receiving findings from the office for purposes of line 7 subparagraphs (A) and (B) of paragraph (3) of subdi vision (c) of line 8 Section 65918.5.03.
line 9 (2)  Receiving findings from the office for purposes of line 10 subparagraph (D) of paragraph (3) of subdi vision (c) of Section line 11 65918.5.03.
line 12 (b)  The office shall, in consultation with the Department of line 13 Housing and Community Development and the Natural Resources line 14 Agency, review applications submitted by a county pursuant to line 15 subdivision (a).
line 16 (c)  (1)  For applications submitted pursuant to paragraph (2) of line 17 subdivision (a), the office shall issue findings in favor of the county line 18 for purposes of subparagraph (D) of paragraph (3) of subdivision line 19 (c) of Section 65918.5.03 if all of the following apply:
line 20 (A)  There is a lack of sufficient acreage in existing communities line 21 for the proposed residential development that is necessary to meet line 22 the county’s regional housing need.
line 23 (B)  Acres that may be designated in e xisting communities for line 24 the proposed residential development for purposes of meeting the line 25 county’s regional housing need are unlikely to be developed in the line 26 required timeframe to meet the county’s regional housing need. line 27 (C)  The county cannot redesignate sufficient acreage on lands line 28 outside of climate resilient lands to meet the county’ s regional line 29 housing need because the redesignation of land is infeasible or line 30 because there is insufficient acreage available for redesignation. 97 AB 68 — 3 —

line 1 (2)  For purposes of this subdi vision, “proposed residential line 2 development” means the de velopment related to the county’ s line 3 increase in planned density, subdivision of property, or extension line 4 of water or sewer service pursuant to Chapter 4.3.1 (commencing line 5 with Section 65918.5).
line 6 (d)  The office may review, adopt, amend, and repeal guidelines line 7 to implement uniform standards or criteria that supplement or line 8 clarify the terms, references, or standards set forth in this section. line 9 (e)  For purposes of this section, the definitions in Chapter 4.3.1 line 10 (commencing with Section 65918.5) apply.
line 11 (f)  References to “county” in this section shall also refer to a line 12 city when related to lands subject to Section 65918.5.04. line 13 SEC. 2. Section 65585 of the Government Code is amended line 14 to read:
line 15 65585. (a)  In the preparation of its housing element, each city line 16 and county shall consider the guidelines adopted by the department line 17 pursuant to Section 50459 of the Health and Safety Code. Those line 18 guidelines shall be advisory to each city or county in the line 19 preparation of its housing element.
line 20 (b)  (1)  At least 90 days prior to adoption of a re vision of its line 21 housing element pursuant to subdivision (e) of Section 65588, or line 22 at least 60 days prior to the adoption of a subsequent amendment line 23 to this element, the planning agency shall submit a draft element line 24 revision or draft amendment to the department. The local line 25 government of the planning agenc y shall mak e the first draft line 26 revision of a housing element available for public comment for at line 27 least 30 days and, if an y comments are recei ved, the local line 28 government shall take at least 10 b usiness days after the 30-day line 29 public comment period to consider and incorporate public line 30 comments into the draft re vision prior to submitting it to the line 31 department. F or an y subsequent draft re vision, the local line 32 government shall post the draft revision on its internet website and line 33 shall email a link to the draft re vision to all indi viduals and line 34 organizations that ha ve previously requested notices relating to line 35 the local government’s housing element at least seven days before line 36 submitting the draft revision to the department. line 37 (2)  The planning agenc y staf f shall collect and compile the line 38 public comments regarding the housing element recei ved by the line 39 city, county, or city and county , and pro vide these comments to 97 — 4 — AB 68

line 1 each member of the legislative body before it adopts the housing line 2 element.
line 3 (3)  The department shall review the draft and report its written line 4 findings to the planning agency within 90 days of its receipt of the line 5 first draft submittal for each housing element revision pursuant to line 6 subdivision (e) of Section 65588 or within 60 days of its receipt line 7 of a subsequent draft amendment or an adopted revision or adopted line 8 amendment to an element. The department shall not re view the line 9 first draft submitted for each housing element re vision pursuant line 10 to subdivision (e) of Section 65588 until the local government has line 11 made the draft available for public comment for at least 30 days line 12 and, if comments were recei ved, has tak en at least 10 b usiness line 13 days to consider and incorporate public comments pursuant to line 14 paragraph (1).
line 15 (c)  In the preparation of its findings, the department may consult line 16 with any public agenc y, group, or person. The department shall line 17 receive and consider an y written comments from an y public line 18 agency, group, or person re garding the draft or adopted element line 19 or amendment under review.
line 20 (d)  In its written findings, the department shall determine line 21 whether the draft element or draft amendment substantially line 22 complies with this article.
line 23 (e)  Prior to the adoption of its draft element or draft amendment, line 24 the le gislative body shall consider the findings made by the line 25 department. If the department’s findings are not a vailable within line 26 the time limits set by this section, the le gislative body may act line 27 without them.
line 28 (f)  If the department finds that the draft element or draft line 29 amendment does not substantially comply with this article, the line 30 legislative body shall take one of the following actions:
line 31 (1)  Change the draft element or draft amendment to substantially line 32 comply with this article.
line 33 (2)  Adopt the draft element or draft amendment without changes. line 34 The legislative body shall include in its resolution of adoption line 35 written findings which e xplain the reasons the le gislative body line 36 believes that the draft element or draft amendment substantially line 37 complies with this article despite the findings of the department. line 38 (g)  Promptly follo wing the adoption of its element or line 39 amendment, the planning agenc y shall submit a cop y to the line 40 department.
97 AB 68 — 5 —

line 1 (h)  The department shall, within 90 days, re view adopted line 2 housing elements or amendments and report its findings to the line 3 planning agency.
line 4 (i)  (1)  (A)  The department shall re view any action or f ailure line 5 to act by the city, county, or city and county that it determines is line 6 inconsistent with an adopted housing element or Section 65583, line 7 including any failure to implement any program actions included line 8 in the housing element pursuant to Section 65583. The department line 9 shall issue written findings to the city, county, or city and county line 10 as to whether the action or f ailure to act substantially complies line 11 with this article, and provide a reasonable time no longer than 30 line 12 days for the city , county, or city and county to respond to the line 13 findings before taking any other action authorized by this section, line 14 including the action authorized by subparagraph (B). line 15 (B)  If the department finds that the action or f ailure to act by line 16 the city, county, or city and county does not substantially comply line 17 with this article, and if it has issued findings pursuant to this section line 18 that an amendment to the housing element substantially complies line 19 with this article, the department may re voke its findings until it line 20 determines that the city, county, or city and county has come into line 21 compliance with this article.
line 22 (2)  The department may consult with an y local go vernment, line 23 public agency, group, or person, and shall recei ve and consider line 24 any written comments from any public agency, group, or person, line 25 regarding the action or f ailure to act by the city , county, or city line 26 and county described in paragraph (1), in determining whether the line 27 housing element substantially complies with this article. line 28 (j)  The department shall notify the city , county, or city and line 29 county and may notify the office of the Attorney General that the line 30 city, county, or city and county is in violation of state la w if the line 31 department finds that the housing element or an amendment to this line 32 element, or an y action or f ailure to act described in subdi vision line 33 (i), does not substantially comply with this article or that any local line 34 government has taken an action in violation of the following:
line 35 (1)  Housing Accountability Act (Section 65589.5). line 36 (2)  Section 65863.
line 37 (3)  Chapter 4.3 (commencing with Section 65915). line 38 (4)  Section 65008.
line 39 (5)  Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, line 40 Sections 65941.1, 65943, and 66300).
97 — 6 — AB 68

line 1 (6)  Section 8899.50.
line 2 (7)  Section 65913.4.
line 3 (8)  Article 11 (commencing with Section 65650). line 4 (9)  Article 12 (commencing with Section 65660). line 5 (10)  Section 65913.11.
line 6 (11)  Section 65400.
line 7 (12)  Section 65863.2.
line 8 (13)  Chapter 4.1 (commencing with Section 65912.100). line 9 (14)  Section 65914.7.5.
line 10 (k)  Commencing July 1, 2019, prior to the Attorney General line 11 bringing any suit for a violation of the pro visions identified in line 12 subdivision (j) related to housing element compliance and seeking line 13 remedies available pursuant to this subdi vision, the department line 14 shall offer the jurisdiction the opportunity for tw o meetings in line 15 person or via telephone to discuss the violation, and shall provide line 16 the jurisdiction written findings re garding the violation. This line 17 paragraph does not af fect any action filed prior to the ef fective line 18 date of this section. The requirements set forth in this subdivision line 19 do not apply to an y suits brought for a violation or violations of line 20 paragraphs (1) and (3) to (9), inclusive, of subdivision (j). line 21 (l)  In any action or special proceeding brought by the Attorney line 22 General relating to housing element compliance pursuant to a line 23 notice or referral under subdivision (j), the Attorney General may line 24 request, upon a finding of the court that the housing element does line 25 not substantially comply with the requirements of this article line 26 pursuant to this section, that the court issue an order or judgment line 27 directing the jurisdiction to bring its housing element into line 28 substantial compliance with the requirements of this article. The line 29 court shall retain jurisdiction to ensure that its order or judgment line 30 is carried out. If a court determines that the housing element of line 31 the jurisdiction substantially complies with this article, it shall line 32 have the same force and effect, for purposes of eligibility for any line 33 financial assistance that requires a housing element in substantial line 34 compliance and for purposes of an y incentives pro vided under line 35 Section 65589.9, as a determination by the department that the line 36 housing element substantially complies with this article. line 37 (1)  If the jurisdiction has not complied with the order or line 38 judgment after 12 months, the court shall conduct a status line 39 conference. Following the status conference, upon a determination line 40 that the jurisdiction f ailed to comply with the order or judgment 97 AB 68 — 7 —

line 1 compelling substantial compliance with the requirements of this line 2 article, the court shall impose fines on the jurisdiction, which shall line 3 be deposited into the Building Homes and Jobs Trust Fund. Any line 4 fine le vied pursuant to this paragraph shall be in a minimum line 5 amount of ten thousand dollars ($10,000) per month, but shall not line 6 exceed one hundred thousand dollars ($100,000) per month, except line 7 as pro vided in paragraphs (2) and (3). In the e vent that the line 8 jurisdiction fails to pay fines imposed by the court in full and on line 9 time, the court may require the Controller to intercept any available line 10 state and local funds and direct such funds to the Building Homes line 11 and Jobs Trust Fund to correct the jurisdiction’ s failure to pay . line 12 The intercept of the funds by the Controller for this purpose shall line 13 not violate any provision of the California Constitution. line 14 (2)  If the jurisdiction has not complied with the order or line 15 judgment after three months follo wing the imposition of fees line 16 described in paragraph (1), the court shall conduct a status line 17 conference. Following the status conference, if the court finds that line 18 the fees imposed pursuant to paragraph (1) are insufficient to bring line 19 the jurisdiction into compliance with the order or judgment, the line 20 court may multiply the fine determined pursuant to paragraph (1) line 21 by a factor of three. In the e vent that the jurisdiction f ails to pay line 22 fines imposed by the court in full and on time, the court may line 23 require the Controller to intercept an y available state and local line 24 funds and direct such funds to the Building Homes and Jobs Trust line 25 Fund to correct the jurisdiction’ s failure to pay. The intercept of line 26 the funds by the Controller for this purpose shall not violate an y line 27 provision of the California Constitution.
line 28 (3)  If the jurisdiction has not complied with the order or line 29 judgment six months follo wing the imposition of fees described line 30 in paragraph (1), the court shall conduct a status conference. Upon line 31 a determination that the jurisdiction failed to comply with the order line 32 or judgment, the court may impose the following:
line 33 (A)  If the court finds that the fees imposed pursuant to line 34 paragraphs (1) and (2) are insufficient to bring the jurisdiction into line 35 compliance with the order or judgment, the court may multiply line 36 the fine determined pursuant to paragraph (1) by a f actor of six. line 37 In the event that the jurisdiction fails to pay fines imposed by the line 38 court in full and on time, the court may require the Controller to line 39 intercept any available state and local funds and direct such funds line 40 to the Building Homes and Jobs Trust Fund to correct the 97 — 8 — AB 68

line 1 jurisdiction’s f ailure to pay . The intercept of the funds by the line 2 Controller for this purpose shall not violate an y provision of the line 3 California Constitution.
line 4 (B)  The court may order remedies available pursuant to Section line 5 564 of the Code of Civil Procedure, under which the agent of the line 6 court may tak e all go vernmental actions necessary to bring the line 7 jurisdiction’s housing element into substantial compliance pursuant line 8 to this article in order to remedy identified deficiencies. The court line 9 shall determine whether the housing element of the jurisdiction line 10 substantially complies with this article and, once the court makes line 11 that determination, it shall have the same force and effect, for all line 12 purposes, as the department’ s determination that the housing line 13 element substantially complies with this article. An agent appointed line 14 pursuant to this paragraph shall ha ve e xpertise in planning in line 15 California.
line 16 (4)  This subdivision does not limit a court’s discretion to apply line 17 any and all remedies in an action or special proceeding for a line 18 violation of any law identified in subdivision (j). line 19 (m)  In determining the application of the remedies a vailable line 20 under subdivision (l), the court shall consider whether there are line 21 any mitigating circumstances delaying the jurisdiction from coming line 22 into compliance with state housing la w. The court may consider line 23 whether a city, county, or city and county is making a good f aith line 24 effort to come into substantial compliance or is facing substantial line 25 undue hardships.
line 26 (n)  Nothing in this section shall limit the authority of the office line 27 of the Attorney General to bring a suit to enforce state la w in an line 28 independent capacity. The office of the Attorney General may seek line 29 all remedies available under law including those set forth in this line 30 section.
line 31 (o)  Notwithstanding Sections 11040 and 11042, if the Attorney line 32 General declines to represent the department in an y action or line 33 special proceeding brought pursuant to a notice or referral under line 34 subdivision (j) the department may appoint or contract with other line 35 counsel for purposes of representing the department in the action line 36 or special proceeding.
line 37 (p)  Notwithstanding any other provision of law, the statute of line 38 limitations set forth in subdivision (a) of Section 338 of the Code line 39 of Civil Procedure shall apply to any action or special proceeding line 40 brought by the Office of the Attorney General or pursuant to a 97 AB 68 — 9 —

line 1 notice or referral under subdi vision (j), or by the department line 2 pursuant to subdivision (o).
line 3 SEC. 3. Section 65914.7.5 is added to the Government Code, line 4 to read:
line 5 65914.7.5. (a)  For purposes of this section, the follo wing line 6 definitions apply:
line 7 (1)  “Climate smart parcel” means a parcel located in a highest line 8 resource, high resource, or moderate resource high-resource, or line 9 moderate-resource area, as cate gorized by the California Tax line 10 Credit Allocation Committee’ s opportunity maps, that meets line 11 satisfies at least one of the following mobility indicators: mobility line 12 indicator.
line 13 (A)  The parcel is located within one-half mile walking distance line 14 of either a high-quality transit corridor or a major transit stop. line 15 (B)  The parcel is located in a very low vehicle travel area. line 16 (C)  The parcel is located within a mile from a cluster of six or line 17 more of the following:
line 18 (i)  Restaurants.
line 19 (ii)  Bars.
line 20 (iii)  Coffee shops.
line 21 (iv)  Supermarkets.
line 22 (v)  Grocery stores.
line 23 (vi)  Hardware stores.
line 24 (vii)  Parks.
line 25 (viii)  Pharmacy.
line 26 (ix)  Drugstore.
line 27 (2)  “High-quality transit corridor” has the same meaning as line 28 defined in subdivision (b) of Section 21155 of the Public Resources line 29 Code.
line 30 (3)  “Housing development” has the same meaning as defined line 31 in paragraph (2) of subdivision (h) of Section 65589.5. line 32 (4)  “Local agency” means a city , county, or city and county , line 33 whether general law or chartered.
line 34 (5)  “Major transit stop” has the same meaning as defined in line 35 Section 21064.3 subdivision (b) of Section 21155 of the Public line 36 Resources Code.
line 37 (6)  “Mobility indicator” means any of the following:
line 38 (A)  The parcel is located within one-half mile walking distance line 39 of either a high-quality transit corridor or a major transit stop. line 40 (B)  The parcel is located in a very low vehicle travel area. 97 — 10 — AB 68

line 1 (C)  The parcel is located within one mile fr om a cluster of six line 2 or more of the following:
line 3 (i)  Restaurant.
line 4 (ii)  Bar.
line 5 (iii)  Coffee shop.
line 6 (iv)  Supermarket.
line 7 (v)  Grocery store.
line 8 (vi)  Hardware store.
line 9 (vii)  Park.
line 10 (viii)  Pharmacy.
line 11 (ix)  Drugstore.
line 12 (6)
line 13 (7)  “Objective zoning standards” and “objective design review line 14 standards” mean standards that involve no personal or subjective line 15 judgment by a public official and are uniformly v erifiable by line 16 reference to an e xternal and uniform benchmark or criterion line 17 available and kno wable by both the de velopment applicant or line 18 proponent and the public official prior to submittal. These standards line 19 may be embodied in alternative objective land use specifications line 20 adopted by a local agenc y, and may include, b ut are not limited line 21 to, housing o verlay zones, specific plans, inclusionary zoning line 22 ordinances, and density bonus ordinances.
line 23 (7)
line 24 (8)  “Priority development area” means an area identified under line 25 the region’s most recent sustainable communities strategy as prime line 26 locations for additional gro wth. These areas may include job line 27 centers, transit priority areas, or other characteristics where line 28 mobility options support achie ving greenhouse g as emissions line 29 reduction.
line 30 (8)
line 31 (9)  (A)  “Very lo w v ehicle tra vel area” means an urbanized line 32 area, as designated by the United States Census Bureau, where the line 33 existing residential development generates vehicle miles traveled line 34 per capita that is below 85 percent of either regional vehicle miles line 35 traveled per capita or city vehicle miles traveled per capita. capita, line 36 or county vehicle miles per capita.
line 37 (B)  For purposes of this subdivision, “area” may include a travel line 38 analysis zone, hexagon, or grid.
line 39 (C)  For purposes of determining “regional vehicle miles traveled line 40 per capita” pursuant to this subdivision, a “region” is the entirety 97 AB 68 — 11 —

line 1 of incorporated and unincorporated areas go verned by a line 2 multicounty or single-county metropolitan planning organization, line 3 or the entirety of the incorporated and unincorporated areas of an line 4 individual county that is not part of a metropolitan planning line 5 organization.
line 6 (b)  A proposed housing de velopment shall be subject to a line 7 streamlined, ministerial approval process in subdivision (c) without line 8 discretionary re view or hearing, if the proposed housing line 9 development consists of multiple units and satisfies all of the line 10 following objective planning standards:
line 11 (1)  (A)  For incorporated areas, the proposed housing line 12 development is proposed to be de veloped on a le gal parcel or line 13 parcels that includes at least a portion of an It is a legal parcel or line 14 parcels located in a city if, and only if, the city boundaries include line 15 some portion of either urbanized area or urban cluster , as line 16 designated by the United States Census Bureau.
line 17 (B)  For unincorporated areas, the proposed housing development line 18 is proposed to be de veloped on a le gal parcel or parcels wholly line 19 within the boundaries of an urbanized area or urban cluster , as line 20 designated by the United States Census Bureau.
line 21 (2)  The proposed parcel for the proposed housing development line 22 is zoned for residential use or residential mixed-use development, line 23 or has a general plan designation that allo ws residential use or a line 24 mix of residential and nonresidential uses, and at least two-thirds line 25 of the square footage of the de velopment is designated for line 26 residential use. Additional density, floor area, and units, and an y line 27 other concession, incentive, or waiver of development standards line 28 granted pursuant to the Density Bonus Law in Section 65915 shall line 29 be included in the square footage calculation. The square footage line 30 of the development shall not include underground space, such as line 31 basements or underground parking garages.
line 32 (3)  (A)  The proposed parcel for the proposed housing line 33 development satisfies the requirements specified in subparagraphs line 34 (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section line 35 65913.4.
line 36 (B)  The proposed parcel is not in an area projected to experience line 37 flooding at less than or equal to sea level rise of five feet according line 38 to information from the National Oceanic and Atmospheric line 39 Administration or according to the best available science. 97 — 12 — AB 68

line 1 (C)  The proposed parcel is not on natural lands within 100 line 2 meters width of streams or ri vers, including, b ut not limited to, line 3 streams or ri vers mapped in the United States En vironmental line 4 Protection Agency National Hydrography Dataset NHDPlus, and line 5 not on natural lands mapped by the United States Forest Service, line 6 Pacific Southwest Region, existing Vegetation CALVEG, or best line 7 available science.
line 8 (4)  The development on the proposed parcel would not require line 9 the demolition or alteration of either of the follo wing types of line 10 housing:
line 11 (A)  Housing that is subject to a recorded covenant, ordinance, line 12 or la w that restricts rents to le vels af fordable to persons and line 13 families of moderate, lo w, or v ery lo w income, as defined in line 14 Sections 50093 and 50105 of the Health and Safety Code. line 15 (B)  Housing that is subject to any form of rent or price control line 16 through a public entity’s valid exercise of its police power. line 17 (5)  The development on the proposed parcel would not require line 18 the demolition of a historic structure that was placed on a national line 19 or state historic register.
line 20 (6)  (A)  Subject to subparagraph (B), the proposed parcel is line 21 included in the applicable re gion’s sustainable communities line 22 strategy as a priority development area or is a climate-smart parcel. line 23 (B)  If the parcel is included in the applicable region’s sustainable line 24 communities strategy as a priority development area or is part of line 25 a master environmental impact report pursuant to the California line 26 Environmental Quality Act (Division 13 (commencing with Section line 27 21000) of the Public Resources Code), meets one of the mobility line 28 indicators defined in paragraph (1) of subdi vision (a), and the line 29 proposed de velopment w ould not be eligible for ministerial line 30 approval under Section 65913.4 because it does not meet the line 31 requirements of subparagraph (5) of subdivision (a) of that section, line 32 then it shall be treated it shall be treated as a climate-smart parcel line 33 for purposes of this section.
line 34 (7)  If the proposed housing development is ____ units or more, line 35 the de velopment proponent certifies to the locality that it will line 36 comply with the requirements of Section 65912.130 or 65912.131 line 37 of the Government Code.
line 38 (8)  The proposed development dedicates a minimum of ____ line 39 percent of the total number of units, before calculating any density line 40 bonus, to deed-restricted affordable housing.
97 AB 68 — 13 —

line 1 (c)  (1)  If a local agenc y determines that a de velopment line 2 submitted pursuant to this section is consistent with the objective line 3 planning standards specified in subdi vision (b) and pursuant to line 4 paragraph (3), it shall approve the development. If a local agency line 5 determines that a development submitted pursuant to this section line 6 is in conflict with any of the objective planning standards specified line 7 in subdi vision (b), it shall pro vide the de velopment proponent line 8 written documentation of which standard or standards the line 9 development conflicts with, and an e xplanation for the reason or line 10 reasons the development conflicts with that standard or standards, line 11 as follows:
line 12 (A)  Within 60 days of submittal of the development to the local line 13 agency pursuant to this section if the de velopment contains 150 line 14 or fewer housing units.
line 15 (B)  Within 90 days of submittal of the development to the local line 16 agency pursuant to this section if the development contains more line 17 than 150 housing units.
line 18 (2)  If the local agenc y f ails to pro vide the required line 19 documentation pursuant to paragraph (1), the de velopment shall line 20 be deemed to satisfy the objective planning standards specified in line 21 subdivision (b).
line 22 (3)  For purposes of this section, a de velopment is consistent line 23 with the objective planning standards specified in subdivision (b) line 24 if there is substantial evidence that would allow a reasonable person line 25 to conclude that the development is consistent with the objective line 26 planning standards. The local agenc y shall not determine that a line 27 development, including an application for a modification under line 28 subdivision (b), is in conflict with the objective planning standards line 29 on the basis that application materials are not included, if the line 30 application contains substantial e vidence that w ould allo w a line 31 reasonable person to conclude that the development is consistent line 32 with the objective planning standards.
line 33 (d)  (1)  (A)  A de velopment proponent may request a line 34 modification to a development that has been appro ved under the line 35 streamlined, ministerial approval process provided in subdivision line 36 (c) if that request is submitted to the local agenc y before the line 37 issuance of the final building permit required for construction of line 38 the development.
line 39 (B)  Except as provided in paragraph (3), the local agency shall line 40 approve a modification if it determines that the modification is 97 — 14 — AB 68

line 1 consistent with the objecti ve planning standards specified in line 2 subdivision (b) that were in effect when the original development line 3 application was first submitted.
line 4 (C)  The local agency shall evaluate any modifications requested line 5 pursuant to this subdi vision for consistenc y with the objecti ve line 6 planning standards using the same assumptions and analytical line 7 methodology that the local agenc y originally used to assess line 8 consistency for the development that was approved for streamlined, line 9 ministerial approval pursuant to subdivision (c). line 10 (D)  A guideline that was adopted or amended by the department line 11 pursuant to subdi vision (f) after a de velopment w as appro ved line 12 through the streamlined, ministerial approval process described in line 13 subdivision (c) shall not be used as a basis to den y proposed line 14 modifications.
line 15 (2)  Upon receipt of the de velopment proponent’s application line 16 requesting a modification, the local agency shall determine if the line 17 requested modification is consistent with the objecti ve planning line 18 standard and either approve or deny the modification request within line 19 60 days after submission of the modification, or within 90 days if line 20 design review is required.
line 21 (3)  Notwithstanding paragraph (1), the local agency may apply line 22 objective planning standards adopted after the de velopment line 23 application was first submitted to the requested modification in line 24 any of the following instances:
line 25 (A)  The development is revised such that the total number of line 26 residential units or total square footage of construction changes line 27 by 15 percent or more. The calculation of the square footage of line 28 construction changes shall not include underground space. line 29 (B)  The development is revised such that the total number of line 30 residential units or total square footage of construction changes line 31 by 5 percent or more and it is necessary to subject the development line 32 to an objecti ve standard be yond those in ef fect when the line 33 development application w as submitted in order to mitig ate or line 34 avoid a specific, adv erse impact, as that term is defined in line 35 subparagraph (A) of paragraph (1) of subdi vision (j) of Section line 36 65589.5, upon the public health or safety and there is no feasible line 37 alternative method to satisfactorily mitigate or avoid the adverse line 38 impact. The calculation of the square footage of construction line 39 changes shall not include underground space.
97 AB 68 — 15 —

line 1 (C)  Objective b uilding standards contained in the California line 2 Building Standards Code (T itle 24 of the California Code of line 3 Regulations), including, b ut not limited to, b uilding plumbing, line 4 electrical, fire, and grading codes, may be applied to all line 5 modification applications that are submitted prior to the first line 6 building permit application. Those standards may be applied to line 7 modification applications submitted after the first building permit line 8 application if agreed to by the development proponent. line 9 (4)  The local agency’s review of a modification request pursuant line 10 to this subdivision shall be strictly limited to determining whether line 11 the modification, including an y modification to pre viously line 12 approved density bonus concessions or w aivers, modify the line 13 development’s consistency with the objective planning standards line 14 and shall not reconsider prior determinations that are not affected line 15 by the modification.
line 16 (e)  (1)  For multifamily housing de velopments that consist of line 17 multiple units on a climate-smart parcel that are submitted pursuant line 18 to this section, the following shall apply:
line 19 (A)  A local agency shall not require impose a setback greater line 20 than four feet from the side, rear, and front lot lines. line 21 (B)  The height limit applicable to the housing development shall line 22 not exceed 50 feet, unless the base density allows a greater height, line 23 in which case the larger of the two shall be used. line 24 (B)  A local agency shall not impose a height limit on a housing line 25 development that is less than 50 feet.
line 26 (C)  The A local agenc y shall not impose requirements that line 27 preclude a development project that has a maximum lot coverage line 28 of 60 percent. applicable to the housing development of less than line 29 60 percent.
line 30 (D)  The A local agency shall not impose or enforce a minimum line 31 parking requirement.
line 32 (E)  Depending on the number of mobility indicators indicators, line 33 the local agency shall impose the following floor area ratios: not line 34 do any of the following:
line 35 (i)  For a housing de velopment project on a parcel with one line 36 mobility indicator, impose a floor area ratio that is less than 1.0. line 37 (ii)  For a housing de velopment project on a parcel with tw o line 38 mobility indicators, impose a floor area ratio that is less than 1.25. line 39 (iii)  For a housing development project on a parcel with all three line 40 mobility indicators, impose a floor area ratio that is less than 1.5. 97 — 16 — AB 68

line 1 (2)  A development proposed pursuant to this section shall be line 2 eligible for a density bonus, incentives or concessions, waivers or line 3 reductions of development standards, and parking ratios pursuant line 4 to Section 65915.
line 5 (3)  A local agenc y may impose objecti ve zoning standards, line 6 objective subdi vision standards, and objecti ve design re view line 7 standards that do not conflict with this section. However, the local line 8 agency shall not do the following:
line 9 (A)  Impose standards that would have the effect of physically line 10 precluding the construction of projects that meet or e xceed the line 11 density standards described in subparagraph (B) of paragraph (3) line 12 of subdivision (c) of Section 65583.2.
line 13 (B)  Adopt or impose an y requirement that applies to a line 14 development project solely or partially on the basis that the project line 15 is eligible to recei ve streamlined, ministerial re view pursuant to line 16 this section, including, b ut not limited to, increased fees or line 17 inclusionary housing requirements.
line 18 (f)  The Department of Housing and Community Development line 19 may re view, adopt, amend, and repeal guidelines, rules, and line 20 regulations to implement uniform standards or criteria that line 21 supplement or clarify the terms, references, or standards set forth line 22 in this section.
line 23 SEC. 4. Chapter 4.3.1 (commencing with Section 65918.5) is line 24 added to Division 1 of Title 7 of the Government Code, to read:
line 25
line 26 Chapter 4.3.1. Density, Subdivisions, and Utilities on line 27 Climate Resilient, Risk, and Refugia Lands
line 28
line 29 65918.5. For purposes of this chapter, the following definitions line 30 apply:
line 31 (a)  “Climate resilient lands” means lands that are not e xisting line 32 communities and that are not excluded lands.
line 33 (b)  “Climate risk lands” mean lands within climate resilient line 34 lands that have been identified as lands within very high and high line 35 fire se verity zones, lands identified as flood zones, or lands line 36 identified as having a sea le vel rise risk of five feet according to line 37 the latest science.
line 38 (c)  “Climate refugia lands” means lands within Terrestrial line 39 Connectivity categories 3, 4, and 5 of the Department of Fish and line 40 Wildlife’s Area of Conservation Emphasis.
97 AB 68 — 17 —

line 1 (d)  “Existing communities” means the following:
line 2 (1)  For incorporated areas, lands within municipal boundaries line 3 as of January 1, 2024.
line 4 (2)  For unincorporated areas, an urbanized area or urban cluster, line 5 as designated by the United States Census Bureau. line 6 (e)  “Excluded lands” are lands that meet one of the follo wing line 7 criteria:
line 8 (1)  Parcels with vested rights.
line 9 (2)  Lands within specific plans with an en vironmental impact line 10 report adopted on or before January 1, 2024.
line 11 (3)  Lands zoned for agriculture, rural, or rangeland succession line 12 reasons to accommodate agricultural workforce that result in uses line 13 that remain accessory to the primary use.
line 14 (f)  “Planned density” means the density of housing that is line 15 planned for the land or parcel, as set on January 1, 2024, in the line 16 county’s general plan.
line 17 65918.5.01. The Legislature finds and declares that the purpose line 18 of this chapter is to protect the public health and safety by line 19 preserving high value natural and working lands for the benefit of line 20 climate resilience, equitable access to open space, biodi versity, line 21 wildlife corridors, and food security.
line 22 65918.5.02. (a)  Notwithstanding any law, a county shall not line 23 increase the planned density on climate resilient lands unless the line 24 planning requirements or conditions set forth in Section 65918.5.03 line 25 are met.
line 26 (b)  Notwithstanding any law, a county shall not appro ve any line 27 tentative, final, or parcel maps pursuant to Division 2 (commencing line 28 with Section 66410) for the subdivision of property within climate line 29 risk lands or climate refugia lands unless the planning requirements line 30 or conditions set forth in Section 65918.5.03 are met. line 31 (c)  Notwithstanding an y la w, a county shall not appro ve an line 32 extension of w ater or se wer services on climate resilient lands line 33 unless the planning requirements or conditions set forth in Section line 34 65918.5.03 are met or the extension of these services are to meet line 35 public health and safety requirements for existing residents. line 36 (d)  This section does not apply to a town or existing community line 37 that has a population fe wer than 5,000, is unincorpor ated, and line 38 ____.
97 — 18 — AB 68

line 1 65918.5.03. A county is not subject to Section 65918.5.02 if line 2 all of the following planning requirements or and conditions are line 3 met:
line 4 (a)  The county has a housing element that is appro ved by the line 5 Department of Housing and Community Development. line 6 (b)  The county’s board of supervisors mak es a finding, based line 7 on a preponderance of the evidence, of housing necessity. line 8 (c)  Following the finding in subdivision (b), the county’s board line 9 of supervisors does the following:
line 10 (1)  Amends its general plan, pursuant to procedures required line 11 by law, including Article 6 (commencing with Section 65350), to line 12 increase the planned density on climate resilient lands, to authorize line 13 the subdivision of property within climate risk lands or climate line 14 refugia lands, or to authorize the e xtension of w ater or se wer line 15 services on climate resilient lands, as applicable. line 16 (2)  In addition to notice required by Article 6 (commencing line 17 with Section 65350), provides at least 30 days’ notice of the public line 18 hearing on the proposed amendments to the general plan to the line 19 owners of properties adjacent to the area affected by the proposed line 20 planned density increase, subdivision of property, or extension of line 21 water or se wer services, as applicable, to the applicable local line 22 agency formation commission, to an y city in whose sphere of line 23 influence the proposed planned density increase, subdi vision of line 24 property, or e xtension of w ater or se wer services, as applicable, line 25 is located, and any other party that requests notice from the county line 26 by submitting their name and contact information with the county line 27 clerk.
line 28 (3)  Makes, in conjunction with the amendment of the general line 29 plan, all of the following findings:
line 30 (A)  The proposed development requiring the increase in planned line 31 density, subdivision of property, or e xtension of w ater or se wer line 32 services is necessary to comply with state housing requirements, line 33 as confirmed by the Office of Planning and Research. line 34 (B)  The parcels requiring the increase in planned density , line 35 subdivision of property, or extension of water or sewer service, as line 36 applicable, will not exceed the minimum area necessary to comply line 37 with state housing la w, as confirmed by the Office of Planning line 38 and Research.
line 39 (C)  The proposed development requiring an increase in planned line 40 density, subdivision of property, or e xtension of w ater or se wer 97 AB 68 — 19 —

line 1 service is immediately adjacent to de veloped areas and housing line 2 proponent has provided evidence to the county that the county’ s line 3 departments, any applicable community services districts, and any line 4 other districts providing utilities or services to the relevant parcel line 5 have adequate capacity to accommodate the proposed development line 6 for the succeeding 30 years. F or purposes of this subparagraph, line 7 the county’s departments and other districts providing utilities and line 8 services include, but are not limited to, the fire department, sheriff’s line 9 department, public works department, water and sewer districts, line 10 and school districts.
line 11 (D)  There is no other existing residential or commercial property line 12 available to accommodate the proposed de velopment on lands line 13 outside of climate resilient lands and it is not feasible to line 14 accommodate the proposed de velopment by redesignating lands line 15 outside of climate resilient lands, as confirmed by the Office of line 16 Planning and Research.
line 17 65918.5.04. Notwithstanding any law, any land that is subject line 18 to Section 65918.5.02 that is anne xed by a city after January 1, line 19 2024, shall still be subject to the prohibitions of this chapter unless line 20 it is an excluded land. For purposes of land that is subject to this line 21 section, references in this chapter to “county” shall also refer to line 22 the city that annexed the land.
line 23 SEC. 5. Section 66425.5 is added to the Government Code, to line 24 read:
line 25 66425.5. Notwithstanding any law, a county shall not approve line 26 any tentative, final, or parcel maps for the subdivision of property line 27 pursuant to this di vision unless the planning requirements or line 28 conditions set forth in Section 65918.5.03 are met for the affected line 29 parcels.
line 30 SEC. 6. The Legislature finds and declares that the provision line 31 of adequate housing, in light of the severe shortage of housing at line 32 all income levels in this state, and the preserv ation of high value line 33 natural and w orking lands are matters of state wide concern and line 34 are not municipal affairs as that term is used in Section 5 of Article line 35 XI of the California Constitution. Therefore, Sections 2, 3, 4, and line 36 5 of this act amending Section 65585 of, adding Sections 65914.7.5 line 37 and 66425.5 to, and adding Chapter 4.3.1 (commencing with line 38 Section 65918.5) to Division 1 of Title 7 of, the Government Code line 39 applies to all cities, including charter cities. 97 — 20 — AB 68

line 1 SEC. 7. No reimbursement is required by this act pursuant to line 2 Section 6 of Article XIIIB of the California Constitution because line 3 a local agency or school district has the authority to le vy service line 4 charges, fees, or assessments sufficient to pay for the program or line 5 level of service mandated by this act, within the meaning of Section line 6 17556 of the Government Code.

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97 AB 68 — 21 —

AMENDED IN ASSEMBLY MARCH 28, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 1485
Introduced by Assembly Member Haney
(Principal coauthor: Senator Wiener)
February 17, 2023
An act to amend Section 65585 of the Government Code, relating to housing.
legislative counsel’s digest
AB 1485, as amended, Haney. Housing element: enforcement:

Attorney General.

The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and requires that general plan to include, among other mandatory elements, a housing element. Existing law authorizes the department Department of Housing and Community De velopment to notify the office of the Attorney General, that a city, county, or city and county is in violation of state la w if the department finds that the housing element or an amendment to the housing element does not substantially comply with specified pro visions of the Planning and Zoning Law, or that the local government has taken action or failed to act in violation of specified pro visions of la w relating to housing, including, among others, the Housing Accountability Act, the Density Bonus Law, and the Housing Crisis Act of 2019.

Existing law provides that an intervention takes place when a nonparty becomes a party to an action or proceeding between other persons by, among other things, joining a plaintif f in claiming what is sought by the complaint. Existing law requires the court to permit a nonparty to

98 intervene in the action or proceeding if a pro vision of law confers an unconditional right to intervene.

This bill would permit the Office of the Attorney General to intervene as a matter of unconditional right in an y le gal action addressing a violation of the housing laws for which the department may notify the office of the Attorney General that a city , county, or city and county has violated, as described above.

This bill would permit both the department and the office of the Attorney General to intervene as a matter of unconditional right in any legal action addr essing a violation of the specified housing laws described above, including, among others, the Housing Accountability Act, the Density Bonus Law, and the Housing Crisis Act of 2019.

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65585 of the Government Code is line 2 amended to read:
line 3 65585. (a)  In the preparation of its housing element, each city line 4 and county shall consider the guidelines adopted by the department line 5 pursuant to Section 50459 of the Health and Safety Code. Those line 6 guidelines shall be advisory to each city or county in the line 7 preparation of its housing element.
line 8 (b)  (1)  At least 90 days prior to adoption of a re vision of its line 9 housing element pursuant to subdivision (e) of Section 65588, or line 10 at least 60 days prior to the adoption of a subsequent amendment line 11 to this element, the planning agency shall submit a draft element line 12 revision or draft amendment to the department. The local line 13 government of the planning agenc y shall mak e the first draft line 14 revision of a housing element available for public comment for at line 15 least 30 days and, if an y comments are recei ved, the local line 16 government shall take at least 10 b usiness days after the 30-day line 17 public comment period to consider and incorporate public line 18 comments into the draft re vision prior to submitting it to the line 19 department. F or an y subsequent draft re vision, the local line 20 government shall post the draft revision on its internet website and line 21 shall email a link to the draft re vision to all indi viduals and line 22 organizations that ha ve previously requested notices relating to 98 — 2 — AB 1485

line 1 the local government’s housing element at least seven days before line 2 submitting the draft revision to the department. line 3 (2)  The planning agenc y staf f shall collect and compile the line 4 public comments regarding the housing element recei ved by the line 5 city, county, or city and county , and pro vide these comments to line 6 each member of the legislative body before it adopts the housing line 7 element.
line 8 (3)  The department shall review the draft and report its written line 9 findings to the planning agency within 90 days of its receipt of the line 10 first draft submittal for each housing element revision pursuant to line 11 subdivision (e) of Section 65588 or within 60 days of its receipt line 12 of a subsequent draft amendment or an adopted revision or adopted line 13 amendment to an element. The department shall not re view the line 14 first draft submitted for each housing element re vision pursuant line 15 to subdivision (e) of Section 65588 until the local government has line 16 made the draft available for public comment for at least 30 days line 17 and, if comments were recei ved, has tak en at least 10 b usiness line 18 days to consider and incorporate public comments pursuant to line 19 paragraph (1).
line 20 (c)  In the preparation of its findings, the department may consult line 21 with any public agenc y, group, or person. The department shall line 22 receive and consider an y written comments from an y public line 23 agency, group, or person re garding the draft or adopted element line 24 or amendment under review.
line 25 (d)  In its written findings, the department shall determine line 26 whether the draft element or draft amendment substantially line 27 complies with this article.
line 28 (e)  Prior to the adoption of its draft element or draft amendment, line 29 the le gislative body shall consider the findings made by the line 30 department. If the department’s findings are not a vailable within line 31 the time limits set by this section, the le gislative body may act line 32 without them.
line 33 (f)  If the department finds that the draft element or draft line 34 amendment does not substantially comply with this article, the line 35 legislative body shall take one of the following actions:
line 36 (1)  Change the draft element or draft amendment to substantially line 37 comply with this article.
line 38 (2)  Adopt the draft element or draft amendment without changes. line 39 The legislative body shall include in its resolution of adoption line 40 written findings which that explain the reasons the legislative body 98 AB 1485 — 3 —

line 1 believes that the draft element or draft amendment substantially line 2 complies with this article article , despite the findings of the line 3 department.
line 4 (g)  Promptly follo wing the adoption of its element or line 5 amendment, the planning agenc y shall submit a cop y to the line 6 department.
line 7 (h)  The department shall, within 90 days, re view adopted line 8 housing elements or amendments and report its findings to the line 9 planning agency.
line 10 (i)  (1)  (A)  The department shall re view any action or f ailure line 11 to act by the city, county, or city and county that it determines is line 12 inconsistent with an adopted housing element or Section 65583, line 13 including any failure to implement any program actions included line 14 in the housing element pursuant to Section 65583. The department line 15 shall issue written findings to the city, county, or city and county line 16 as to whether the action or f ailure to act substantially complies line 17 with this article, and provide a reasonable time no longer than 30 line 18 days for the city , county, or city and county to respond to the line 19 findings before taking any other action authorized by this section, line 20 including the action authorized by subparagraph (B). line 21 (B)  If the department finds that the action or f ailure to act by line 22 the city, county, or city and county does not substantially comply line 23 with this article, and if it has issued findings pursuant to this section line 24 that an amendment to the housing element substantially complies line 25 with this article, the department may re voke its findings until it line 26 determines that the city, county, or city and county has come into line 27 compliance with this article.
line 28 (2)  The department may consult with an y local go vernment, line 29 public agency, group, or person, and shall recei ve and consider line 30 any written comments from any public agency, group, or person, line 31 regarding the action or f ailure to act by the city , county, or city line 32 and county described in paragraph (1), in determining whether the line 33 housing element substantially complies with this article. line 34 (j)  The department shall notify the city , county, or city and line 35 county and may notify the office of the Attorney General that the line 36 city, county, or city and county is in violation of state la w if the line 37 department finds that the housing element or an amendment to this line 38 element, or an y action or f ailure to act described in subdi vision line 39 (i), does not substantially comply with this article or that any local line 40 government has taken an action in violation of the following:
98 — 4 — AB 1485

line 1 (1)  Housing Accountability Act (Section 65589.5). line 2 (2)  Section 65863.
line 3 (3)  Chapter 4.3 (commencing with Section 65915). line 4 (4)  Section 65008.
line 5 (5)  Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, line 6 Sections 65941.1, 65943, and 66300).
line 7 (6)  Section 8899.50.
line 8 (7)  Section 65913.4.
line 9 (8)  Article 11 (commencing with Section 65650). line 10 (9)  Article 12 (commencing with Section 65660). line 11 (10)  Section 65913.11.
line 12 (11)  Section 65400.
line 13 (12)  Section 65863.2.
line 14 (13)  Chapter 4.1 (commencing with Section 65912.100). line 15 (k)  Commencing July 1, 2019, prior to the Attorney General line 16 bringing any suit for a violation of the pro visions identified in line 17 subdivision (j) related to housing element compliance and seeking line 18 remedies available pursuant to this subdi vision, the department line 19 shall offer the jurisdiction the opportunity for tw o meetings in line 20 person or via telephone to discuss the violation, and shall provide line 21 the jurisdiction written findings re garding the violation. This line 22 paragraph does not af fect any action filed prior to the ef fective line 23 date of this section. The requirements set forth in this subdivision line 24 do not apply to an y suits brought for a violation or violations of line 25 paragraphs (1) and (3) to (9), inclusive, of subdivision (j). line 26 (l)  In any action or special proceeding brought by the Attorney line 27 General relating to housing element compliance pursuant to a line 28 notice or referral under subdivision (j), the Attorney General may line 29 request, upon a finding of the court that the housing element does line 30 not substantially comply with the requirements of this article line 31 pursuant to this section, that the court issue an order or judgment line 32 directing the jurisdiction to bring its housing element into line 33 substantial compliance with the requirements of this article. The line 34 court shall retain jurisdiction to ensure that its order or judgment line 35 is carried out. If a court determines that the housing element of line 36 the jurisdiction substantially complies with this article, it shall line 37 have the same force and effect, for purposes of eligibility for any line 38 financial assistance that requires a housing element in substantial line 39 compliance and for purposes of an y incentives pro vided under 98 AB 1485 — 5 —

line 1 Section 65589.9, as a determination by the department that the line 2 housing element substantially complies with this article. line 3 (1)  If the jurisdiction has not complied with the order or line 4 judgment after 12 months, the court shall conduct a status line 5 conference. Following the status conference, upon a determination line 6 that the jurisdiction f ailed to comply with the order or judgment line 7 compelling substantial compliance with the requirements of this line 8 article, the court shall impose fines on the jurisdiction, which shall line 9 be deposited into the Building Homes and Jobs Trust Fund. Any line 10 fine le vied pursuant to this paragraph shall be in a minimum line 11 amount of ten thousand dollars ($10,000) per month, but shall not line 12 exceed one hundred thousand dollars ($100,000) per month, except line 13 as pro vided in paragraphs (2) and (3). In the e vent that the line 14 jurisdiction fails to pay fines imposed by the court in full and on line 15 time, the court may require the Controller to intercept any available line 16 state and local funds and direct such funds to the Building Homes line 17 and Jobs Trust Fund to correct the jurisdiction’ s failure to pay . line 18 The intercept of the funds by the Controller for this purpose shall line 19 not violate any provision of the California Constitution. line 20 (2)  If the jurisdiction has not complied with the order or line 21 judgment after three months follo wing the imposition of fees line 22 described in paragraph (1), the court shall conduct a status line 23 conference. Following the status conference, if the court finds that line 24 the fees imposed pursuant to paragraph (1) are insufficient to bring line 25 the jurisdiction into compliance with the order or judgment, the line 26 court may multiply the fine determined pursuant to paragraph (1) line 27 by a factor of three. In the e vent that the jurisdiction f ails to pay line 28 fines imposed by the court in full and on time, the court may line 29 require the Controller to intercept an y available state and local line 30 funds and direct such funds to the Building Homes and Jobs Trust line 31 Fund to correct the jurisdiction’ s failure to pay. The intercept of line 32 the funds by the Controller for this purpose shall not violate an y line 33 provision of the California Constitution.
line 34 (3)  If the jurisdiction has not complied with the order or line 35 judgment six months follo wing the imposition of fees described line 36 in paragraph (1), the court shall conduct a status conference. Upon line 37 a determination that the jurisdiction failed to comply with the order line 38 or judgment, the court may impose the following:
line 39 (A)  If the court finds that the fees imposed pursuant to line 40 paragraphs (1) and (2) are insufficient to bring the jurisdiction into 98 — 6 — AB 1485

line 1 compliance with the order or judgment, the court may multiply line 2 the fine determined pursuant to paragraph (1) by a f actor of six. line 3 In the event that the jurisdiction fails to pay fines imposed by the line 4 court in full and on time, the court may require the Controller to line 5 intercept any available state and local funds and direct such funds line 6 to the Building Homes and Jobs Trust Fund to correct the line 7 jurisdiction’s f ailure to pay . The intercept of the funds by the line 8 Controller for this purpose shall not violate an y provision of the line 9 California Constitution.
line 10 (B)  The court may order remedies available pursuant to Section line 11 564 of the Code of Civil Procedure, under which the agent of the line 12 court may tak e all go vernmental actions necessary to bring the line 13 jurisdiction’s housing element into substantial compliance pursuant line 14 to this article in order to remedy identified deficiencies. The court line 15 shall determine whether the housing element of the jurisdiction line 16 substantially complies with this article and, once the court makes line 17 that determination, it shall have the same force and effect, for all line 18 purposes, as the department’ s determination that the housing line 19 element substantially complies with this article. An agent appointed line 20 pursuant to this paragraph shall ha ve e xpertise in planning in line 21 California.
line 22 (4)  This subdivision does not limit a court’s discretion to apply line 23 any and all remedies in an action or special proceeding for a line 24 violation of any law identified in subdivision (j). line 25 (m)  In determining the application of the remedies a vailable line 26 under subdivision (l), the court shall consider whether there are line 27 any mitigating circumstances delaying the jurisdiction from coming line 28 into compliance with state housing la w. The court may consider line 29 whether a city, county, or city and county is making a good f aith line 30 effort to come into substantial compliance or is facing substantial line 31 undue hardships.
line 32 (n)  Nothing in this section shall limit the authority of the office line 33 of the Attorney General to bring a suit to enforce state la w in an line 34 independent capacity. The office of the Attorney General may seek line 35 all remedies available under law including those set forth in this line 36 section, and shall be permitted to interv ene as a matter of line 37 unconditional right, under subparagraph (A) of paragraph (1) of line 38 subdivision (d) of Section 387 of the Code of Civil Procedure, in line 39 any le gal action addressing a violation of an y la w set forth in line 40 subdivision (j). section.
98 AB 1485 — 7 —

line 1 (o)  Notwithstanding Sections 11040 and 11042, if the Attorney line 2 General declines to represent the department in an y action or line 3 special proceeding brought pursuant to a notice or referral under line 4 subdivision (j) (j), the department may appoint or contract with line 5 other counsel for purposes of representing the department in the line 6 action or special proceeding.
line 7 (p)  Notwithstanding any other provision of law, the statute of line 8 limitations set forth in subdivision (a) of Section 338 of the Code line 9 of Civil Procedure shall apply to any action or special proceeding line 10 brought by the Office office of the Attorney General or pursuant line 11 to a notice or referral under subdivision (j), or by the department line 12 pursuant to subdivision (o).
line 13 (q)  In any suit brought to enforce either this article or any state line 14 law listed under subdivision (j), the department and the office of line 15 the Attorney General shall eac h have the unconditional right to line 16 intervene under subparagraph (A) of paragraph (1) of subdivision line 17 (d) of Section 387 of the Code of Civil Pr ocedure. The office of line 18 the Attorney General shall have this unconditional right whether line 19 intervening in an independent capacity or pursuant to a notice or line 20 referral from the department.

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98 — 8 — AB 1485

AMENDED IN SENATE MARCH 28, 2023
AMENDED IN SENATE FEBRUARY 22, 2023
SENATE BILL No. 4
Introduced by Senator Wiener
(Principal coauthors: Assembly Members McKinnor Berman, McKinnor, and Wicks)
(Coauthors: Senators Becker, Cortese, Eggman, Gonzalez, Menjivar, and Skinner)
(Coauthors: Assembly Members Alvarez, Friedman, Gabriel, Quirk-Silva, and Ward)
December 5, 2022
An act to add Section 65913.16 to the Government Code, relating to housing.
legislative counsel’s digest
SB 4, as amended, Wiener. Planning and zoning: housing
development: higher education institutions and religious institutions.

The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the de velopment of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a de velopment proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit, if the development satisfies certain objective planning standards.

Existing la w, the Zeno vich-Moscone-Chacon Housing and Home Finance Act, establishes the California Tax Credit Allocation Committee within the Department of Housing and Community De velopment.

Existing law requires the committee to allocate state low-income housing

97 tax credits in conformity with state and federal la w that establishes a maximum rent that may be char ged to a tenant for a project unit constructed using low-income housing tax credits.

This bill would require that a housing development project be a use by right upon the request of an applicant who submits an application for streamlined appro val, on an y land o wned by an independent institution of higher education or religious institution on or before January 1, 2024, if the development satisfies specified criteria, including that the de velopment is not adjoined to an y site where more than one-third of the square footage on the site is dedicated to industrial use.

The bill would define various terms for these purposes. Among other things, the bill w ould require that 100% of the units, e xclusive of manager units, in a housing development project eligible for approval as a use by right under these provisions be affordable to lower income households, except that 20% of the units may be for moderate-income households, and 5% of the units may be for staf f of the independent institution of higher education or the religions religious institution that owns the land, pro vided that the units af fordable to lo wer income households are offered at affordable rent, as set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee, or af fordable housing cost, as specified. The bill w ould authorize the development to include ancillary uses on the ground floor of the development, as specified.

This bill w ould specify that a housing de velopment project that is eligible for approval as a use by right under the bill is also eligible for a density bonus or other incenti ves or concessions, bonus, incentives, or concessions, or waivers or reductions of development and parking standards, except as specified. The bill would require a de velopment subject to these pro visions to pro vide off-street parking of up to one space per unit, unless a state law or local ordinance provides for a lower standard of parking, in which case the law or ordinance applies. The bill w ould prohibit a local go vernment from imposing an y parking requirement on a de velopment subject to these pro visions if the development is located within one-half mile walking distance of public transit, either a high-quality transit corridor or a major transit stop, as those terms are defined, or it is within one block of a car share vehicle.

This bill would require a local government that determines a proposed development is in conflict with an y objective planning standards, as specified, to pro vide the de veloper with written documentation explaining those conflicts under a specified timeframe. The bill would 97 — 2 — SB 4

provide that the de velopment shall be deemed to satisfy the required objective planning standards if the local go vernment fails to pro vide the requisite documentation e xplaining any conflicts. The bill w ould authorize a local government to conduct a design review, as described, only if the design re view focuses on compliance with the requisite criteria of a streamlined, ministerial re view process. The bill w ould prohibit a local go vernment from using a design re view, as specified, from inhibiting, chilling, or precluding a streamlined, ministerial approval. The bill w ould require a local go vernment to issue a subsequent permit for developments approved under the provisions of this act.

The bill w ould include findings that changes proposed by this bill address a matter of state wide concern rather than a municipal af fair and, therefore, apply to all cities, including charter cities.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an en vironmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a ne gative declaration if it finds that the project will not have that effect. CEQA does not apply to the ministerial approval of projects.

This bill, by requiring approval of certain development projects as a use by right, w ould expand the exemption for ministerial appro val of projects under CEQA.

By adding to the duties of local planning officials with respect to approving certain de velopment projects, this bill w ould impose a state-mandated local program.

The California Constitution requires the state to reimb urse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65913.16 is added to the Government line 2 Code, to read:
97 SB 4 — 3 —

line 1 65913.16. (a)  For This section shall be known, and may be line 2 cited, as the Affordable Housing on Faith and Higher Education line 3 Lands Act of 2023.
line 4 (b)  For purposes of this section:
line 5 (1)  “Applicant” means a qualified de veloper who submits an line 6 application for streamlined approval pursuant to this section. line 7 (2)  “Development proponent” means a developer that submits line 8 a housing development project application to a local government line 9 under the streamlined, ministerial review process pursuant to this line 10 chapter.
line 11 (3)  “Health care expenditures” include contributions pursuant line 12 to Section 501(c) or (d) or 401(a) of the Internal Re venue Code line 13 and payments to ward “medical care” as defined in Section line 14 213(d)(1) of the Internal Revenue Code.
line 15 (4)  “Housing development project” has the same meaning as line 16 defined in Section 65589.5.
line 17 (5)  “Independent institution of higher education” has the same line 18 meaning as defined in Section 66010 of the Education Code. line 19 (6)  “Industrial use” means utilities, manufacturing, transportation line 20 storage and maintenance f acilities, and w arehousing f acilities. line 21 “Industrial use” does not include po wer substations or utility line 22 conveyance such as power lines, broadband wires, and pipes. line 23 (7)  “Local government” means a city, including a charter city, line 24 county, including a charter county , or city and county , including line 25 a charter city and county.
line 26 (8)  “Qualified developer” means any of the following:
line 27 (A)  A local public entity , as defined in Section 50079 of the line 28 Health and Safety Code.
line 29 (B)  (i)  A developer that is a nonprofit corporation, a limited line 30 partnership in which the managing general partner is a nonprofit line 31 corporation, or a limited liability company in which the managing line 32 member is a nonprofit corporation.
line 33 (ii)  The developer, at the time of submission of an application line 34 for development pursuant to this section, owns property or manages line 35 housing units located on property that is e xempt from taxation line 36 pursuant to the welf are exemption established in subdi vision (a) line 37 of Section 214 of the Revenue and Taxation Code. line 38 (C)  A developer that contracts with a nonprofit corporation that line 39 has recei ved a welf are e xemption under Section 214.15 of the line 40 Revenue and Taxation Code for properties intended to be sold to 97 — 4 — SB 4

line 1 low-income families with financing in the form of zero interest line 2 rate loans.
line 3 (D)  A developer that the r eligious institution or independent line 4 institution of education, as defined in this section, has contracted line 5 with before to construct housing or other impr ovements to r eal line 6 property.
line 7 (9)  “Religious institution” means an institution o wned, line 8 controlled, and operated and maintained by a bona fide church, line 9 religious denomination, or religious or ganization composed of line 10 multidenominational members of the same well-recognized line 11 religion, lawfully operating as a nonprofit religious corporation line 12 pursuant to Part 4 (commencing with Section 9110) 9110), or as line 13 a corporation sole pursuant to Part 6 (commencing with Section line 14 10000), of Division 2 of Title 1 of the Corporations Code. line 15 (10)  “Use by right” means a development project that satisfies line 16 both of the following conditions:
line 17 (A)  The development project does not require a conditional use line 18 permit, planned unit de velopment permit, or other discretionary line 19 local government review.
line 20 (B)  The development project is not a “project” for purposes of line 21 Division 13 (commencing with Section 21000) of the Public line 22 Resources Code.
line 23 (b)
line 24 (c)  Notwithstanding an y inconsistent pro vision of a local line 25 government’s general plan, specific plan, zoning ordinance, or line 26 regulation, upon the request of an applicant, a housing development line 27 project shall be a use by right, if all of the follo wing criteria are line 28 satisfied:
line 29 (1)  The development is located on land o wned on or before line 30 January 1, 2024, by an independent institution of higher education line 31 or a religious institution, including ownership through an affiliated line 32 or associated nonprofit public benefit corporation or ganized line 33 pursuant to the Nonprofit Corporation Law (Part 2 (commencing line 34 with Section 5110) of Di vision 2 of Title 1 of the Corporations line 35 Code).
line 36 (2)  The development is located on a parcel that satisfies the line 37 requirements specified in subparagraphs (A) and (B) of paragraph line 38 (2) of subdivision (a) of Section 65913.4.
97 SB 4 — 5 —

line 1 (3)  The development is located on a parcel that satisfies the line 2 requirements specified in subparagraphs (B) to (K), inclusi ve, of line 3 paragraph (6) of subdivision (a) of Section 65913.4. line 4 (4)  The development is located on a parcel that satisfies the line 5 requirements specified in paragraph (7) of subdi vision (a) of line 6 Section 65913.4.
line 7 (5)  The development is not adjoined to an y site where more line 8 than one-third of the square footage on the site is dedicated to line 9 industrial use. For purposes of this subdivision, parcels separated line 10 by only a street or highway shall be considered to be adjoined. line 11 (6)  The de velopment project is located on a site that is line 12 one-quarter acre in size or greater.
line 13 (7)
line 14 (6)  One hundred percent of the development project’s total units, line 15 exclusive of a manager’ s unit or units, are for lo wer income line 16 households, as defined by Section 50079.5 of the Health and Safety line 17 Code, e xcept that up to 20 percent of the total units in the line 18 development may be for moderate-income households, as defined line 19 in Section 50053 of the Health and Safety Code, and 5 percent of line 20 the units may be for staff of the independent institution of higher line 21 education or religious institution that owns the land. Units in the line 22 development shall be offered at affordable housing cost, as defined line 23 in Section 50052.5 of the Health and Safety Code, or at affordable line 24 rent, as set in an amount consistent with the rent limits established line 25 by the California Tax Credit Allocation Committee. The rent or line 26 sales price for a moderate-income unit shall be affordable and shall line 27 not exceed 30 percent of income for a moderate-income household line 28 or homebuyer for a unit of similar size and bedroom count in the line 29 same ZIP Code in the city, county, or city and county in which the line 30 housing development is located. The applicant shall pro vide the line 31 city, county, or city and county with evidence to establish that the line 32 units meet the requirements of this paragraph. All units, exclusive line 33 of any manager unit or units, shall be subject to a recorded deed line 34 restriction as provided in this paragraph for at least the following line 35 periods of time:
line 36 (A)  Fifty-five years for units that are rented. However, the local line 37 government may require that the rental units in the housing line 38 development project be restricted to lo wer income and line 39 moderate-income households for a longer period of time if that line 40 restriction is consistent with all applicable regulatory requirements 97 — 6 — SB 4

line 1 for state assistance. rented unless a local ordinance or the terms line 2 of a feder al, state , or local gr ant, tax cr edit, or other pr oject line 3 financing requires, as a condition of the development of residential line 4 units, that the development include a certain percentage of units line 5 that are affordable to, and occupied by, low-income, lower income, line 6 very low income, or extremely low income households for a term line 7 that exceeds 55 years for rental housing units.
line 8 (B)  Forty-five years for units that are owner occupied. However, line 9 the local go vernment may require that o wner-occupied units in line 10 the housing development project be restricted to lower income and line 11 moderate-income households for a longer period of time if that line 12 restriction is consistent with all applicable regulatory requirements line 13 for state assistance. owner-occupied or the first purchaser of each line 14 unit participates in an equity sharing a greement as described in line 15 subparagraph (C) of par agraph (2) of subdivision (c) of section line 16 65915.
line 17 (8)
line 18 (7)  The de velopment project complies with all objecti ve line 19 development standards of the city or county that are not in conflict line 20 with this section.
line 21 (9)
line 22 (8)  If the housing development project requires the demolition line 23 of existing residential dwelling units, or is located on a site where line 24 residential dwelling units have been demolished within the last line 25 five year s, the applicant shall comply with subdi vision (d) of line 26 Section 66300, as that section read as of January 1, 2024. 66300. line 27 (10)
line 28 (9)  The applicant certifies to the local go vernment that either line 29 of the follo wing is true for the housing de velopment project, as line 30 applicable:
line 31 (A)  The entirety of the de velopment project is a public w ork line 32 for purposes of Chapter 1 (commencing with Section 1720) of Part line 33 7 of Division 2 of the Labor Code.
line 34 (B)  A development that contains more than 10 units and is not line 35 in its entirety a public work for purposes of Chapter 1 (commencing line 36 with Section 1720) of Part 7 of Division 2 of the Labor Code and line 37 approved by a local government pursuant to Article 2 (commencing line 38 with Section 65912.110) of, or Article 3 (commencing with Section line 39 65912.120) of, Chapter 4.1 shall be subject to all of the following:
97 SB 4 — 7 —

line 1 (i)  All construction workers employed in the e xecution of the line 2 development shall be paid at least the general pre vailing rate of line 3 per diem w ages for the type of w ork and geographic area, as line 4 determined by the Director of Industrial Relations pursuant to line 5 Sections 1773 and 1773.9 of the Labor Code, e xcept that line 6 apprentices registered in programs pro vided by the Chief of the line 7 Division of Apprenticeship Standards may be paid at least the line 8 applicable apprentice prevailing rate.
line 9 (ii)  The development proponent shall ensure that the prevailing line 10 wage requirement is included in all contracts for the performance line 11 of the work for those portions of the de velopment that are not a line 12 public work.
line 13 (iii)  All contractors and subcontractors for those portions of the line 14 development that are not a public work shall comply with both of line 15 the following:
line 16 (I)  Pay to all construction w orkers employed in the e xecution line 17 of the work at least the general prevailing rate of per diem wages, line 18 except that apprentices registered in the programs approved by the line 19 Chief of the Division of Apprenticeship Standards may be paid at line 20 least the applicable apprentice prevailing rate. line 21 (II)  Maintain and v erify payroll records pursuant to Section line 22 1776 of the Labor Code and mak e those records a vailable for line 23 inspection and copying as provided in that section. This subclause line 24 does not apply if all contractors and subcontractors performing line 25 work on the development are subject to a project labor agreement line 26 that requires the payment of pre vailing wages to all construction line 27 workers emplo yed in the e xecution of the de velopment and line 28 provides for enforcement of that obligation through an arbitration line 29 procedure. F or purposes of this subclause, “project labor line 30 agreement” has the same meaning as set forth in paragraph (1) of line 31 subdivision (b) of Section 2500 of the Public Contract Code. line 32 (10)  (A)  The de velopment pr oponent completes a phase I line 33 environmental assessment, as defined in Section 25319.1 of the line 34 Health and Safety Code.
line 35 (B)  If a r ecognized en vironmental condition is found, the line 36 development pr oponent shall undertak e a pr eliminary line 37 endangerment assessment, as defined in Section 25319.5 of the line 38 Health and Safety Code , prepared by an environmental assessor line 39 to determine the existence of any release of a hazardous substance line 40 on the site and to determine the potential for e xposure of future 97 — 8 — SB 4

line 1 occupants to significant health hazards from any nearby property line 2 or activity.
line 3 (i)  If a release of hazardous substance is found to e xist on the line 4 site, the release shall be removed, or any significant effect of the line 5 release shall be mitigated to a level of insignificance in compliance line 6 with state and federal requirements.
line 7 (ii)  If a potential for e xposure to significant hazar ds fr om line 8 surrounding properties or activities is found to e xist, the ef fects line 9 of the potential e xposure shall be mitigated to a le vel of line 10 insignificance in compliance with curr ent state and feder al line 11 requirements.
line 12 (c)
line 13 (d)  (1)  The obligation of the contractors and subcontractors to line 14 pay prevailing wages pursuant to this section may be enforced by line 15 any of the following:
line 16 (A)  The Labor Commissioner, through the issuance of a ci vil line 17 wage and penalty assessment pursuant to Section 1741 of the Labor line 18 Code, that may be reviewed pursuant to Section 1742 of the Labor line 19 Code, within 18 months after the completion of the development. line 20 (B)  An underpaid worker through an administrative complaint line 21 or civil action.
line 22 (C)  A joint labor-management committee through a civil action line 23 pursuant to Section 1771.2 of the Labor Code.
line 24 (2)  If a civil wage and penalty assessment is issued pursuant to line 25 this section, the contractor, subcontractor, and surety on a bond or line 26 bonds issued to secure the payment of w ages co vered by the line 27 assessment shall be liable for liquidated damages pursuant to line 28 Section 1742.1 of the Labor Code.
line 29 (3)  This subdi vision does not apply if all contractors and line 30 subcontractors performing work on the de velopment are subject line 31 to a project labor agreement that requires the payment of prevailing line 32 wages to all construction w orkers employed in the e xecution of line 33 the development and provides for enforcement of that oblig ation line 34 through an arbitration procedure. For purposes of this subdivision, line 35 “project labor agreement” has the same meaning as set forth in line 36 paragraph (1) of subdi vision (b) of Section 2500 of the Public line 37 Contract Code.
line 38 (d)
line 39 (e)  Notwithstanding subdivision (c) of Section 1773.1 of the line 40 Labor Code, the requirement that employer payments not reduce 97 SB 4 — 9 —

line 1 the obligation to pay the hourly straight time or o vertime wages line 2 found to be pre vailing does not apply to those portions of a line 3 development that are not a public work if otherwise provided in a line 4 bona fide collective bargaining agreement covering the worker. line 5 (e)
line 6 (f)  The requirement of this section to pay at least the general line 7 prevailing rate of per diem w ages does not preclude use of an line 8 alternative workweek schedule adopted pursuant to Section 511 line 9 or 514 of the Labor Code.
line 10 (f)
line 11 (g)  In addition to the requirements of Section 65912.130, a line 12 development of 50 or more housing units appro ved by a local line 13 government pursuant to Article 2 (commencing with Section line 14 65912.110) of, or Article 3 (commencing with Section 65912.120) line 15 of, Chapter 4.1 shall meet all of the following labor standards:
line 16 (1)  The development proponent shall require in contracts with line 17 construction contractors and shall certify to the local government line 18 that each contractor of any tier who will employ construction craft line 19 employees or will let subcontracts for at least 1,000 hours shall line 20 satisfy the requirements in paragraphs (2) and (3). A construction line 21 contractor is deemed in compliance with paragraphs (2) and (3) if line 22 it is signatory to a v alid collecti ve bar gaining agreement that line 23 requires use of registered apprentices and expenditures on health line 24 care for employees and dependents.
line 25 (2)  A contractor with construction craft employees shall either line 26 participate in an apprenticeship program approved by the Division line 27 of Apprenticeship Standards pursuant to Section 3075 of the Labor line 28 Code, or request the dispatch of apprentices from a state-approved line 29 apprenticeship program under the terms and conditions set forth line 30 in Section 1777.5 of the Labor Code. A contractor without line 31 construction craft employees shall show a contractual obligation line 32 that its subcontractors comply with this subdivision. line 33 (3)  Each contractor with construction craft emplo yees shall line 34 make health care e xpenditures for each emplo yee in an amount line 35 per hour w orked on the de velopment equivalent to at least the line 36 hourly pro rata cost of a Co vered California Platinum-level plan line 37 for two adults 40 years of age and tw o dependents 0 to 14 years line 38 of age for the Co vered California rating area in which the line 39 development is located. A contractor without construction craft line 40 employees shall sho w a contractual oblig ation that its 97 — 10 — SB 4

line 1 subcontractors comply with this paragraph. Qualifying expenditures line 2 shall be credited toward compliance with prevailing wage payment line 3 requirements set forth in Section 65912.130.
line 4 (4)  (A)  The development proponent shall provide to the local line 5 government, on a monthly basis while its construction contracts line 6 on the development are being performed, a report demonstrating line 7 compliance with paragraphs (2) and (3). The report shall be line 8 considered public records under the California Public Records Act line 9 (Division 10 (commending with Section 7920.000) of Title 1), and line 10 shall be open to public inspection.
line 11 (B)  A development proponent that fails to provide the monthly line 12 report shall be subject to a civil penalty for each month for which line 13 the report has not been pro vided, in the amount of 10 percent of line 14 the dollar value of construction work performed by that contractor line 15 on the development in the month in question, up to a maximum line 16 of ten thousand dollars ($10,000). Any contractor or subcontractor line 17 that fails to comply with paragraph (2) or (3) shall be subject to a line 18 civil penalty of two hundred dollars ($200) per day for each worker line 19 employed in contravention of paragraph (2) or (3). line 20 (C)  Penalties may be assessed by the Labor Commissioner line 21 within 18 months of completion of the de velopment using the line 22 procedures for issuance of ci vil w age and penalty assessments line 23 specified in Section 1741 of the Labor Code, and may be reviewed line 24 pursuant to Section 1742 of the Labor Code. Penalties shall be line 25 deposited in the State Public Works Enforcement Fund established line 26 pursuant to Section 1771.3 of the Labor Code.
line 27 (5)  Each construction contractor shall maintain and v erify line 28 payroll records pursuant to Section 1776 of the Labor Code. Each line 29 construction contractor shall submit payroll records directly to the line 30 Labor Commissioner at least monthly in a format prescribed by line 31 the Labor Commissioner in accordance with subparagraph (A) of line 32 paragraph (3) of subdi vision (a) of Section 1771.4 of the Labor line 33 Code. The records shall include a statement of fringe benefits. line 34 Upon request by a joint labor-management cooperation committee line 35 established pursuant to the federal Labor Management Cooperation line 36 Act of 1978 (29 U.S.C. Sec. 175a), the records shall be pro vided line 37 pursuant to subdivision (e) of Section 1776 of the Labor Code. line 38 (6)  All construction contractors shall report an y change in line 39 apprenticeship program participation or health care e xpenditures line 40 to the local government within 10 business days, and shall reflect 97 SB 4 — 11 —

line 1 those changes on the monthly report. The reports shall be line 2 considered public records pursuant to the California Public Records line 3 Act (Division 10 (commencing with Section 7920.000 of Title 1)) line 4 and shall be open to public inspection.
line 5 (7)  A joint labor-management cooperation committee established line 6 pursuant to the federal Labor Management Cooperation Act of line 7 1978 (29 U.S.C. Sec. 175a) shall ha ve standing to sue a line 8 construction contractor for failure to make health care expenditures line 9 pursuant to paragraph (3) in accordance with Section 218.7 or line 10 218.8 of the Labor Code.
line 11 (g)
line 12 (h)  Notwithstanding an y other pro vision of this section, a line 13 development project that is eligible for approval as a use by right line 14 pursuant to this section may include the following ancillary uses, line 15 provided that those uses are limited to the ground floor of the line 16 development:
line 17 (1)  In a single-f amily residential zone, ancillary uses shall be line 18 limited to uses that provide direct services to the residents of the line 19 development and have a community benefit, including childcare line 20 centers and community centers.
line 21 (2)  In all other zones, the development may include commercial line 22 uses that are permitted without a conditional use permit or planned line 23 unit development permit.
line 24 (h)
line 25 (i)  Notwithstanding an y other pro vision of this section, a line 26 development project that is eligible for approval as a use by right line 27 pursuant to this section may include includes an y religious line 28 institutional use, or any use that was previously existing and legally line 29 permitted by the city or county on the site, if all of the follo wing line 30 criteria are met:
line 31 (1)  The total square footage of nonresidential space on the site line 32 does not exceed the amount previously existing or permitted in a line 33 conditional use permit.
line 34 (2)  The total parking requirement for nonresidential space on line 35 the site does not exceed the lesser of the amount existing or of the line 36 amount required by a conditional use permit.
line 37 (3)  The new uses abide by the same operational conditions as line 38 contained in the pervious previous conditional use permit. line 39 (i)
97 — 12 — SB 4

line 1 (j)  A housing de velopment project that qualifies as a use by line 2 right pursuant to subdi vision (b) shall be allo wed the follo wing line 3 density, as applicable:
line 4 (1)  (A)  If the de velopment project is located in a zone that line 5 allows residential uses, the development project shall be allowed line 6 a density of the applicable density deemed appropriate to line 7 accommodate housing for lower income households identified in line 8 subparagraph (B) of paragraph (3) of subdi vision (c) of Section line 9 65583.2. 65583.2 and a height of one story abo ve the maximum line 10 height otherwise applicable to the parcel.
line 11 (B)  If the local government allows for greater residential density line 12 on that parcel, or greater residential density or building heights on line 13 an adjacent parcel, than permitted in subparagraph (A), the greater line 14 density or building height shall apply.
line 15 (C)  A housing development project that is located in a zone that line 16 allows residential uses shall be eligible for a density bonus or other line 17 incentives or concession bonus, incentives, or concessions, or line 18 waivers or reductions of development standards and parking ratios, line 19 pursuant to Section 65915.
line 20 (2)  (A)  If the development project is located in a zone that does line 21 not allow residential uses, the development project shall be allowed line 22 a density of 40 units per acre and a height of one story abo ve the line 23 maximum height otherwise applicable to the parcel. line 24 (B)  If the local government allows for greater residential density line 25 or b uilding heights on that parcel, or an adjacent parcel, than line 26 permitted in subparagraph (A), the greater density or b uilding line 27 height shall apply . A de velopment project shall not use an line 28 incentive, w aiver, or concession to increase the height of the line 29 development to greater than the height authorized under this line 30 subparagraph.
line 31 (C)  Except as pro vided in subparagraph (B) (B), a housing line 32 development project that is located in a zone that does not allo w line 33 residential uses shall be eligible for a density bonus or other line 34 incentives or concession bonus, incentives, or concessions, or line 35 waivers or reductions of development standards and parking ratios, line 36 pursuant to Section 65915.
line 37 (j)
line 38 (k)  (1)  Except as pro vided in paragraph (2), the proposed line 39 development shall pro vide off-street parking of up to one space 97 SB 4 — 13 —

line 1 per unit, unless a state law or local ordinance provides for a lower line 2 standard of parking, in which case the law or ordinance shall apply. line 3 (2)  A local government shall not impose a parking requirement line 4 if either of the following is true:
line 5 (A)  The parcel is located within one-half mile walking distance line 6 of public transit, either a high-quality transit corridor or a major line 7 transit stop as defined in subdi vision (b) of Section 21155 of the line 8 Public Resources Code.
line 9 (B)  There is a car share vehicle located within one block of the line 10 parcel.
line 11 (k)
line 12 (l)  (1)  If the local go vernment determines that the proposed line 13 development is in conflict with an y of the objecti ve planning line 14 standards specified in this section, it shall provide the development line 15 proponent written documentation of which standard or standards line 16 the development conflicts with, and an explanation for the reason line 17 or reasons the de velopment conflicts with that standard or line 18 standards, within the following timeframes:
line 19 (A)  Within 60 days of submittal of the de velopment proposal line 20 to the local government if the development contains 150 or fewer line 21 housing units.
line 22 (B)  Within 90 days of submittal of the de velopment proposal line 23 to the local go vernment if the de velopment contains more than line 24 150 housing units.
line 25 (2)  If the local go vernment f ails to pro vide the required line 26 documentation pursuant to paragraph (1), the de velopment shall line 27 be deemed to satisfy the required objective planning standards. line 28 (3)  For purposes of this section, a de velopment is consistent line 29 with the objecti ve planning standards if there is substantial line 30 evidence that w ould allow a reasonable person to conclude that line 31 the development is consistent with the objective planning standards. line 32 (4)  The determination of whether a proposed project submitted line 33 pursuant to this section is or is not in conflict with the objecti ve line 34 planning standards is not a “project” as defined in Section 21065 line 35 of the Public Resources Code.
line 36 (5)  Design review of the development may be conducted by the line 37 local government’s planning commission or any equivalent board line 38 or commission responsible for review and approval of development line 39 projects, or the city council or board of supervisors, as appropriate. line 40 That design review shall be objecti ve and be strictly focused on 97 — 14 — SB 4

line 1 assessing compliance with criteria required for streamlined, line 2 ministerial review of projects, as well as any reasonable objective line 3 design standards published and adopted by ordinance or resolution line 4 by a local jurisdiction before submittal of the development to the line 5 local government, and shall be broadly applicable to developments line 6 within the jurisdiction. That design review shall be completed as line 7 follows and shall not in an y way inhibit, chill, or preclude the line 8 ministerial appro val pro vided by this section or its ef fect, as line 9 applicable:
line 10 (A)  Within 90 days of submittal of the de velopment proposal line 11 to the local government pursuant to this section if the development line 12 contains 150 or fewer housing units.
line 13 (B)  Within 180 days of submittal of the development proposal line 14 to the local government pursuant to this section if the development line 15 contains more than 150 housing units.
line 16 (6)  The local government shall ensure that the project satisfies line 17 the requirements specified in subdi vision (d) of Section 66300, line 18 regardless of whether the development is within or not within an line 19 affected city or within or not within an affected county. line 20 (7)  If the de velopment is consistent with all objecti ve line 21 subdivision standards in the local subdi vision ordinance, an line 22 application for a subdivision pursuant to the Subdivision Map Act line 23 (Division 2 (commencing with Section 66410)) shall be e xempt line 24 from the requirements of the California En vironmental Quality line 25 Act (Division 13 (commencing with Section 21000) of the Public line 26 Resources Code).
line 27 (8)  A local government’s approval of a de velopment pursuant line 28 to this section shall, notwithstanding any other law, be subject to line 29 the expiration timeframes specified in subdi vision (f) of Section line 30 65913.4.
line 31 (9)  Any proposed modifications to a de velopment project line 32 approved pursuant to this section shall be undertaken pursuant to line 33 subdivision (g) of Section 65913.4.
line 34 (10)  A local go vernment shall not adopt or impose an y line 35 requirement, including, b ut not limited to, increased fees or line 36 inclusionary housing requirements, that applies to a project solely line 37 or partially on the basis that the project is eligible to recei ve line 38 streamlined, ministerial review pursuant to this section. 97 SB 4 — 15 —

line 1 (11)  A local government shall issue a subsequent permit required line 2 for a de velopment appro ved under this section pursuant to line 3 paragraph (2) of subdivision (h) of Section 65913.4. line 4 (12)  A public impro vement that is necessary to implement a line 5 development that is appro ved pursuant to this section shall be line 6 undertaken pursuant to paragraph (3) of subdivision (h) of Section line 7 65913.4.
line 8 (l)
line 9 (m)  The Legislature finds and declares that ensuring residential line 10 development at greater density on land o wned by independent line 11 institutions of higher education and religious institutions is a matter line 12 of statewide concern and is not a municipal af fair as that term is line 13 used in Section 5 of Article XI of the California Constitution. line 14 Therefore, this section applies to all cities, including charter cities. line 15 (m)
line 16 (n)  The pro visions of paragraph (3) of subdi vision (f) (g) line 17 concerning health care e xpenditures are distinct and se verable line 18 from the remaining provisions of this section. However, all other line 19 provisions of subdivision (f) (g) are material and integral parts of line 20 this section and are not severable. If any provision of subdivision line 21 (f), (g), exclusive of those included in paragraph (3), is held invalid, line 22 the entire section shall be invalid and shall not be given effect. line 23 SEC. 2. No reimbursement is required by this act pursuant to line 24 Section 6 of Article XIIIB of the California Constitution because line 25 a local agency or school district has the authority to le vy service line 26 charges, fees, or assessments sufficient to pay for the program or line 27 level of service mandated by this act, within the meaning of Section line 28 17556 of the Government Code.

O
97 — 16 — SB 4

AMENDED IN SENATE MARCH 28, 2023
SENATE BILL No. 423
Introduced by Senator Wiener
(Principal coauthor: Assembly Member Wicks)
(Coauthor: Senator Hurtado)
(Coauthor: Assembly Member Grayson)
February 13, 2023
An act to amend Section 65913.4 of the Government Code, relating to land use.
legislative counsel’s digest
SB 423, as amended, Wiener. Land use: streamlined housing approvals: multifamily housing developments.

Existing law, the Planning and Zoning Law, authorizes a development proponent to submit an application for a multif amily housing development that is subject to a streamlined, ministerial appro val process, as provided, and not subject to a conditional use permit, if the development satisfies specified objective planning standards, including, among others, that the development proponent has committed to record, prior to the issuance of the first b uilding permit, a land use restriction or covenant providing that any lower or moderate-income housing units required, as specified, remain available at affordable housing costs, as defined, or rent to persons and f amilies of lower or moderate-income for no less than specified periods of time. Existing la w repeals these provisions on January 1, 2026.

This bill would authorize the Department of General Services to act in the place of a locality or local go vernment, at the discretion of that department, for purposes of the ministerial, streamlined re view for development on property owned by or leased to the state. The bill would

98 delete the January 1, 2026, repeal date, thereby making these provisions operative indefinitely.

This bill w ould modify the abo ve-described objecti ve planning standards, including by deleting the standard that prohibits a multifamily housing development from being subject to the streamlined, ministerial approval process if the de velopment is located in a coastal zone, and by providing an alternati ve definition for “af fordable housing costs” for a development that dedicates 100% of units, exclusive of a manager’s unit or units, to lower income households. The bill would, among other modifications, delete the objecti ve planning standards requiring development proponents to pay at least the general pre vailing rate of per diem wages and utilize a skilled and trained workforce and would instead require a de velopment proponent to certify to the local government that certain wage and labor standards will be met, including a requirement that all construction workers be paid at least the general prevailing rate of wages, as specified. The bill would require the Labor Commissioner to enforce the oblig ation to pay pre vailing wages. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill w ould specify that the requirements to pay prevailing wages, use a w orkforce participating in an apprenticeship, or provide health care expenditures do not apply to a project that consists of 10 or fewer units and is not otherwise a public work.

This bill w ould define “objecti ve planning standards” to e xclude specified standards, including local b uilding codes, fire codes, other codes requiring detailed technical specifications, and standards that are not reasonably ascertainable by the local government within specified time limits, as described.

Existing law requires a local government to approve a development if the local government determines the development is consistent with the objecti ve planning standards. Existing la w requires, if the local government determines a submitted development is in conflict with any of the objecti ve planning standards, the local go vernment to pro vide the development proponent written documentation of the standards the development conflicts with and an e xplanation for the conflict within certain timelines depending on the size of the de velopment. Existing law, the Housing Accountability Act, prohibits a local agenc y from disapproving a housing de velopment project, as described, unless it makes specified written findings.

This bill w ould instead require appro val if a local go vernment’s planning director or any equivalent local government staff, including 98 — 2 — SB 423

all relevant planning and permitting departments, equivalent position determines the development is consistent with the objecti ve planning standards. The bill w ould make conforming changes. The bill would require all departments of the local go vernment that ar e required to issue an appr oval of the de velopment prior to the gr anting of an entitlement to also comply with the abo ve-described str eamlined approval requirements within specified time periods. The bill w ould prohibit a local go vernment from requiring a de velopment proponent to provide consultant studies, as described, or other studies requiring, prior to approving a de velopment that meets the r equirements of the above-described streamlining provisions, compliance with any standards necessary to receive a postentitlement permit or studies, information, or other materials that are unnecessary to ascertain consistency do not pertain directly to determining whether the de velopment is consistent with the objecti ve planning standards. standar ds applicable to the development.

The bill w ould, for purposes of these pro visions, establish that the total number of units in a de velopment includes (1) all projects developed on a site, regardless of when those developments occur, and (2) all projects developed on sites adjacent to a site developed pursuant to these provisions if, after January 1, 2023, the adjacent site had been subdivided from the site developed pursuant to these provisions.

Existing law authorizes the local government’s planning commission or an y equi valent board or commission responsible for re view and approval of development projects, or as otherwise specified, to conduct any design review or public oversight of the development.

This bill would remove the above-described authorization to conduct public oversight of the development and would only authorize design review to be conducted by the local government’s planning commission or any equivalent board or commission responsible for design review.

By imposing additional duties on local officials, the bill would impose a state-mandated local program.

The bill w ould include findings that changes proposed by this bill address a matter of state wide concern rather than a municipal af fair and, therefore, apply to all cities, including charter cities.

The California Constitution requires the state to reimb urse local agencies and school districts for certain costs mandated by the state.

Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for specified reasons.
98 SB 423 — 3 —

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​
The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares that it has line 2 provided reforms and incenti ves to f acilitate and e xpedite the line 3 construction of affordable housing. Those reforms and incentives line 4 can be found in the following provisions:
line 5 (a)  Housing element la w (Article 10.6 (commencing with line 6 Section 65580) of Chapter 3 of Di vision 1 of Title 7 of the line 7 Government Code).
line 8 (b)  Extension of statute of limitations in actions challenging the line 9 housing element and brought in support of af fordable housing line 10 (subdivision (d) of Section 65009 of the Government Code). line 11 (c)  Restrictions on disappro val of housing de velopments line 12 (Section 65589.5 of the Government Code).
line 13 (d)  Priority for affordable housing in the allocation of water and line 14 sewer hookups (Section 65589.7 of the Government Code). line 15 (e)  Least cost zoning law (Section 65913.1 of the Government line 16 Code).
line 17 (f)  Density Bonus La w (Section 65915 of the Go vernment line 18 Code).
line 19 (g)  Accessory dwelling units (Sections 65852.150 and 65852.2 line 20 of the Government Code).
line 21 (h)  By-right housing, in which certain multif amily housing is line 22 designated a permitted use (Section 65589.4 of the Go vernment line 23 Code).
line 24 (i)  No-net-loss-in zoning density law limiting downzonings and line 25 density reductions (Section 65863 of the Government Code). line 26 (j)  Requiring persons who sue to halt affordable housing to pay line 27 attorney’s fees (Section 65914 of the Go vernment Code) or post line 28 a bond (Section 529.2 of the Code of Civil Procedure). line 29 (k)  Reduced time for action on affordable housing applications line 30 under the appro val of de velopment permits process (Article 5 line 31 (commencing with Section 65950) of Chapter 4.5 of Di vision 1 line 32 of Title 7 of the Government Code).
line 33 (l)  Limiting moratoriums on multifamily housing (Section 65858 line 34 of the Government Code).
98 — 4 — SB 423

line 1 (m)  Prohibiting discrimination ag ainst af fordable housing line 2 (Section 65008 of the Government Code).
line 3 (n)  California F air Emplo yment and Housing Act (P art 2.8 line 4 (commencing with Section 12900) of Division 3 of Title 2 of the line 5 Government Code).
line 6 (o)  Community Redevelopment Law (Part 1 (commencing with line 7 Section 33000) of Division 24 of the Health and Safety Code, and line 8 in particular Sections 33334.2 and 33413 of the Health and Safety line 9 Code).
line 10 (p)  Streamlining housing approvals during a housing shortage line 11 (Section 65913.4 of the Government Code).
line 12 (q)  Housing sustainability districts (Chapter 11 (commencing line 13 with Section 66200) of Di vision 1 of Title 7 of the Go vernment line 14 Code).
line 15 (r)  Streamlining agricultural emplo yee housing de velopment line 16 approvals (Section 17021.8 of the Health and Safety Code). line 17 (s)  The Housing Crisis Act of 2019 (Senate Bill 330 (Chapter line 18 654 of the Statutes of 2019)).
line 19 (t)  Allowing four units to be b uilt on single-family par cels line 20 statewide (Senate Bill 9 (Chapter 162 of Statutes of 2021)). line 21 (u)  The Middle Class Housing Act of 2022 (Section 65852.24 line 22 of the Government Code).
line 23 (s)
line 24 (v)  Affordable Housing and High Road Jobs Act of 2022 line 25 (Chapter 4.1 (commencing with Section 65912.100) of Di vision line 26 1 of Title 7 of the Government Code).
line 27 SEC. 2. Section 65913.4 of the Government Code is amended line 28 to read:
line 29 65913.4. (a)  A de velopment proponent may submit an line 30 application for a de velopment that is subject to the streamlined, line 31 ministerial approval process pro vided by subdi vision (c) and is line 32 not subject to a conditional use permit or any other nonlegislative line 33 discretionary appro val if the de velopment complies with line 34 subdivision (b) and satisfies all of the following objective planning line 35 standards:
line 36 (1)  The development is a multifamily housing development that line 37 contains two or more residential units.
line 38 (2)  The development and the site on which it is located satisfy line 39 all of the following:
98 SB 423 — 5 —

line 1 (A)  It is a legal parcel or parcels located in a city if, and only line 2 if, the city boundaries include some portion of either an urbanized line 3 area or urban cluster, as designated by the United States Census line 4 Bureau, or , for unincorporated areas, a le gal parcel or parcels line 5 wholly within the boundaries of an urbanized area or urban cluster, line 6 as designated by the United States Census Bureau. line 7 (B)  At least 75 percent of the perimeter of the site adjoins parcels line 8 that are developed with urban uses. For the purposes of this section, line 9 parcels that are only separated by a street or highw ay shall be line 10 considered to be adjoined.
line 11 (C)  (i)  A site that meets the requirements of clause (ii) and line 12 satisfies any of the following:
line 13 (I)  The site is zoned for residential use or residential mixed-use line 14 development.
line 15 (II)  The site has a general plan designation that allows residential line 16 use or a mix of residential and nonresidential uses. line 17 (III)  The site is zoned for office or retail commercial use and line 18 meets the requirements of Section 65852.24.
line 19 (ii)  At least two-thirds of the square footage of the development line 20 is designated for residential use. Additional density, floor area, line 21 and units, and an y other concession, incenti ve, or w aiver of line 22 development standards granted pursuant to the Density Bonus Law line 23 in Section 65915 shall be included in the square footage line 24 calculation. The square footage of the de velopment shall not line 25 include underground space, such as basements or under ground line 26 parking garages.
line 27 (3)  (A)  The development proponent has committed to record, line 28 prior to the issuance of the first b uilding permit, a land use line 29 restriction or co venant pro viding that an y lo wer or moderate line 30 income housing units required pursuant to subparagraph (B) of line 31 paragraph (4) shall remain a vailable at af fordable housing costs line 32 or rent to persons and f amilies of lower or moderate-income for line 33 no less than the following periods of time:
line 34 (i)  Fifty-five years for units that are rented. line 35 (ii)  Forty-five years for units that are owned. line 36 (B)  The city or county shall require the recording of covenants line 37 or restrictions implementing this paragraph for each parcel or unit line 38 of real property included in the development.
line 39 (4)  The development satisfies clause (i) or (ii) of subparagraph line 40 (A) and satisfies subparagraph (B) below:
98 — 6 — SB 423

line 1 (A)  (i)  For a development located in a locality that is in its sixth line 2 or earlier housing element c ycle, the de velopment is located in line 3 either of the following:
line 4 (I)  In a locality that the department has determined is subject line 5 to this clause on the basis that the number of units that have been line 6 issued building permits, as shown on the most recent production line 7 report received by the department, is less than the locality’s share line 8 of the re gional housing needs, by income cate gory, for that line 9 reporting period. A locality shall remain eligible under this line 10 subclause until the department’ s determination for the ne xt line 11 reporting period.
line 12 (II)  In a locality that the department has determined is subject line 13 to this clause on the basis that the locality did not adopt a housing line 14 element that has been found in substantial compliance with housing line 15 element law (Article 10.6 (commencing with Section 65580) of line 16 Chapter 3) by the department. A locality shall remain eligible under line 17 this subclause until such time as the locality adopts a housing line 18 element that has been found in substantial compliance with housing line 19 element law (Article 10.6 (commencing with Section 65580) of line 20 Chapter 3) by the department.
line 21 (ii)  For a development located in a locality that is in its seventh line 22 or later housing element c ycle, is located in a locality that the line 23 department has determined is subject to this clause on the basis line 24 that the locality did not adopt a housing element that has been line 25 found in substantial compliance with housing element law (Article line 26 10.6 (commencing with Section 65580) of Chapter 3) by the line 27 department by the statutory deadline, or that the number of units line 28 that have been issued building permits, as shown on the most recent line 29 production report recei ved by the department, is less than the line 30 locality’s share of the regional housing needs, by income category, line 31 for that reporting period. A locality shall remain eligible under line 32 this subparagraph until the department’s determination for the next line 33 reporting period.
line 34 (B)  The development is subject to a requirement mandating a line 35 minimum percentage of below market rate housing based on one line 36 of the following:
line 37 (i)  The locality did not adopt a housing element pursuant to line 38 Section 65588 that has been found in substantial compliance with line 39 the housing element law (Article 10.6 (commencing with Section line 40 65580) of Chapter 3) by the department, did not submit its latest 98 SB 423 — 7 —

line 1 production report to the department by the time period required line 2 by Section 65400, or that production report submitted to the line 3 department reflects that there were fe wer units of abo ve line 4 moderate-income housing issued b uilding permits than were line 5 required for the regional housing needs assessment cycle for that line 6 reporting period. In addition, if the project contains more than 10 line 7 units of housing, the project does either of the following:
line 8 (I)  The project dedicates a minimum of 10 percent of the total line 9 number of units, before calculating any density bonus, to housing line 10 affordable to households making at or below 80 percent of the area line 11 median income. Ho wever, if the locality has adopted a local line 12 ordinance that requires that greater than 10 percent of the units be line 13 dedicated to housing af fordable to households making belo w 80 line 14 percent of the area median income, that local ordinance applies. line 15 (II)  (ia)  If the project is located within the San Francisco Bay line 16 area, the project, in lieu of complying with subclause (I), dedicates line 17 20 percent of the total number of units, before calculating an y line 18 density bonus, to housing affordable to households making below line 19 120 percent of the area median income with the a verage income line 20 of the units at or belo w 100 percent of the area median income. line 21 However, a local ordinance adopted by the locality applies if it line 22 requires greater than 20 percent of the units be dedicated to housing line 23 affordable to households making at or belo w 120 percent of the line 24 area median income, or requires that any of the units be dedicated line 25 at a le vel deeper than 120 percent. In order to comply with this line 26 subclause, the rent or sale price charged for units that are dedicated line 27 to housing affordable to households between 80 percent and 120 line 28 percent of the area median income shall not exceed 30 percent of line 29 the gross income of the household.
line 30 (ib)  For purposes of this subclause, “San Francisco Bay area” line 31 means the entire area within the territorial boundaries of the line 32 Counties of Alameda, Contra Costa, Marin, Napa, San Mateo, line 33 Santa Clara, Solano, and Sonoma, and the City and County of San line 34 Francisco.
line 35 (ii)  The locality’s latest production report reflects that there line 36 were fewer units of housing issued building permits affordable to line 37 either v ery lo w income or lo w-income households by income line 38 category than were required for the re gional housing needs line 39 assessment cycle for that reporting period, and the project seeking line 40 approval dedicates 50 percent of the total number of units, before 98 — 8 — SB 423

line 1 calculating any density bonus, to housing affordable to households line 2 making at or belo w 80 percent of the area median income. line 3 However, if the locality has adopted a local ordinance that requires line 4 that greater than 50 percent of the units be dedicated to housing line 5 affordable to households making at or below 80 percent of the area line 6 median income, that local ordinance applies.
line 7 (iii)  The locality did not submit its latest production report to line 8 the department by the time period required by Section 65400, or line 9 if the production report reflects that there were fe wer units of line 10 housing affordable to both income levels described in clauses (i) line 11 and (ii) that were issued b uilding permits than were required for line 12 the re gional housing needs assessment c ycle for that reporting line 13 period, the project seeking approval may choose between utilizing line 14 clause (i) or (ii).
line 15 (C)  (i)  A development proponent that uses a unit of affordable line 16 housing to satisfy the requirements of subparagraph (B) may also line 17 satisfy any other local or state requirement for affordable housing, line 18 including local ordinances or the Density Bonus La w in Section line 19 65915, provided that the de velopment proponent complies with line 20 the applicable requirements in the state or local la w. If a local line 21 requirement for affordable housing requires units that are restricted line 22 to households with incomes higher than the applicable income line 23 limits required in subparagraph (B), then units that meet the line 24 applicable income limits required in subparagraph (B) shall be line 25 deemed to satisfy those local requirements for higher income units. line 26 (ii)  A de velopment proponent that uses a unit of af fordable line 27 housing to satisfy any other state or local affordability requirement line 28 may also satisfy the requirements of subparagraph (B), pro vided line 29 that the de velopment proponent complies with applicable line 30 requirements of subparagraph (B).
line 31 (iii)  A de velopment proponent may satisfy the af fordability line 32 requirements of subparagraph (B) with a unit that is restricted to line 33 households with incomes lower than the applicable income limits line 34 required in subparagraph (B).
line 35 (D)  The amendments to this subdivision made by the act adding line 36 this subparagraph do not constitute a change in, but are declaratory line 37 of, existing law.
line 38 (5)  The development, excluding any additional density or an y line 39 other concessions, incentives, or waivers of development standards line 40 for which the development is eligible pursuant to the Density Bonus 98 SB 423 — 9 —

line 1 Law in Section 65915, is consistent with objecti ve zoning line 2 standards, objective subdivision standards, and objecti ve design line 3 review standards in ef fect at the time that the de velopment is line 4 submitted to the local go vernment pursuant to this section, or at line 5 the time a notice of intent is submitted pursuant to subdivision (b), line 6 whichever occurs earlier. For purposes of this paragraph, “objective line 7 zoning standards, ” “objecti ve subdi vision standards, ” and line 8 “objective design review standards” mean standards that in volve line 9 no personal or subjecti ve judgment by a public official and are line 10 uniformly v erifiable by reference to an e xternal and uniform line 11 benchmark or criterion a vailable and kno wable by both the line 12 development applicant or proponent and the public official before line 13 submittal. These standards may be embodied in alternati ve line 14 objective land use specifications adopted by a city or county, and line 15 may include, but are not limited to, housing overlay zones, specific line 16 plans, inclusionary zoning ordinances, and density bonus line 17 ordinances, subject to the following:
line 18 (A)  A development shall be deemed consistent with the objective line 19 zoning standards related to housing density , as applicable, if the line 20 density proposed is compliant with the maximum density allowed line 21 within that land use designation, notwithstanding an y specified line 22 maximum unit allocation that may result in fewer units of housing line 23 being permitted.
line 24 (B)  In the event that objective zoning, general plan, subdivision, line 25 or design re view standards are mutually inconsistent, a line 26 development shall be deemed consistent with the objective zoning line 27 and subdi vision standards pursuant to this subdi vision if the line 28 development is consistent with the standards set forth in the general line 29 plan.
line 30 (C)  It is the intent of the Le gislature that the objective zoning line 31 standards, objective subdivision standards, and objecti ve design line 32 review standards described in this paragraph be adopted or line 33 amended in compliance with the requirements of Chapter 905 of line 34 the Statutes of 2004.
line 35 (D)  The amendments to this subdivision made by the act adding line 36 this subparagraph do not constitute a change in, but are declaratory line 37 of, existing law.
line 38 (E)  A project that satisfies the requirements of Section 65852.24 line 39 shall be deemed consistent with objecti ve zoning standards, line 40 objective design standards, and objective subdivision standards if 98 — 10 — SB 423

line 1 the project is consistent with the pro visions of subdivision (b) of line 2 Section 65852.24 and if none of the square footage in the project line 3 is designated for hotel, motel, bed and breakf ast inn, or other line 4 transient lodging use, except for a residential hotel. For purposes line 5 of this subdivision, “residential hotel” shall have the same meaning line 6 as defined in Section 50519 of the Health and Safety Code. line 7 (6)  The development is not located on a site that is an y of the line 8 following:
line 9 (A)  Either prime farmland or farmland of statewide importance, line 10 as defined pursuant to United States Department of Agriculture line 11 land inventory and monitoring criteria, as modified for California, line 12 and designated on the maps prepared by the F armland Mapping line 13 and Monitoring Program of the Department of Conserv ation, or line 14 land zoned or designated for agricultural protection or preservation line 15 by a local ballot measure that w as approved by the voters of that line 16 jurisdiction.
line 17 (B)  Wetlands, as defined in the United States Fish and Wildlife line 18 Service Manual, P art 660 FW 2 (June 21, 1993), unless the line 19 development within the wetlands has been authorized by a permit line 20 or other approval issued pursuant to federal or other state law. line 21 (C)  Within a very high fire hazard severity zone, as determined line 22 by the Department of F orestry and Fire Protection pursuant to line 23 Section 51178, or within a high or v ery high fire hazard severity line 24 zone as indicated on maps adopted by the Department of Forestry line 25 and Fire Protection pursuant to Section 4202 of the Public line 26 Resources Code. This subparagraph does not apply to sites line 27 excluded from the specified hazard zones by a local agenc y, line 28 pursuant to subdi vision (b) of Section 51179, or sites that ha ve line 29 adopted fire hazard mitig ation measures pursuant to e xisting line 30 building standards or state fire mitigation measures applicable to line 31 the development.
line 32 (D)  A hazardous w aste site that is listed pursuant to Section line 33 65962.5 or a hazardous waste site designated by the Department line 34 of Toxic Substances Control pursuant to Section 25356 of the line 35 Health and Safety Code, unless either of the following apply:
line 36 (i)  The site is an underground storage tank site that received a line 37 uniform closure letter issued pursuant to subdivision (g) of Section line 38 25296.10 of the Health and Safety Code based on closure criteria line 39 established by the State Water Resources Control Board for line 40 residential use or residential mix ed uses. This section does not 98 SB 423 — 11 —

line 1 alter or change the conditions to remo ve a site from the list of line 2 hazardous waste sites listed pursuant to Section 65962.5. line 3 (ii)  The State Department of Public Health, State Water line 4 Resources Control Board, Department of Toxic Substances Control, line 5 or a local agency making a determination pursuant to subdivision line 6 (c) of Section 25296.10 of the Health and Safety Code, has line 7 otherwise determined that the site is suitable for residential use or line 8 residential mixed uses.
line 9 (E)  Within a delineated earthquake fault zone as determined by line 10 the State Geologist in an y official maps published by the State line 11 Geologist, unless the development complies with applicable seismic line 12 protection b uilding code standards adopted by the California line 13 Building Standards Commission under the California Building line 14 Standards La w (P art 2.5 (commencing with Section 18901) of line 15 Division 13 of the Health and Safety Code), and by an y local line 16 building department under Chapter 12.2 (commencing with Section line 17 8875) of Division 1 of Title 2.
line 18 (F)  Within a special flood hazard area subject to inundation by line 19 the 1 percent annual chance flood (100-year flood) as determined line 20 by the Federal Emer gency Management Agency in an y official line 21 maps published by the Federal Emergency Management Agency. line 22 If a development proponent is able to satisfy all applicable federal line 23 qualifying criteria in order to pro vide that the site satisfies this line 24 subparagraph and is otherwise eligible for streamlined appro val line 25 under this section, a local government shall not deny the application line 26 on the basis that the development proponent did not comply with line 27 any additional permit requirement, standard, or action adopted by line 28 that local government that is applicable to that site. A development line 29 may be located on a site described in this subparagraph if either line 30 of the following are met:
line 31 (i)  The site has been subject to a Letter of Map Re vision line 32 prepared by the Federal Emer gency Management Agency and line 33 issued to the local jurisdiction.
line 34 (ii)  The site meets Federal Emer gency Management Agency line 35 requirements necessary to meet minimum flood plain management line 36 criteria of the National Flood Insurance Program pursuant to Part line 37 59 (commencing with Section 59.1) and P art 60 (commencing line 38 with Section 60.1) of Subchapter B of Chapter I of Title 44 of the line 39 Code of Federal Regulations.
98 — 12 — SB 423

line 1 (G)  Within a regulatory floodway as determined by the Federal line 2 Emergency Management Agency in any official maps published line 3 by the Federal Emer gency Management Agency, unless the line 4 development has recei ved a no-rise certification in accordance line 5 with Section 60.3(d)(3) of Title 44 of the Code of Federal line 6 Regulations. If a de velopment proponent is able to satisfy all line 7 applicable federal qualifying criteria in order to pro vide that the line 8 site satisfies this subparagraph and is otherwise eligible for line 9 streamlined approval under this section, a local government shall line 10 not den y the application on the basis that the de velopment line 11 proponent did not comply with any additional permit requirement, line 12 standard, or action adopted by that local go vernment that is line 13 applicable to that site.
line 14 (H)  Lands identified for conserv ation in an adopted natural line 15 community conservation plan pursuant to the Natural Community line 16 Conservation Planning Act (Chapter 10 (commencing with Section line 17 2800) of Di vision 3 of the Fish and Game Code), habitat line 18 conservation plan pursuant to the federal Endangered Species Act line 19 of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural line 20 resource protection plan.
line 21 (I)  Habitat for protected species identified as candidate, line 22 sensitive, or species of special status by state or federal agencies, line 23 fully protected species, or species protected by the federal line 24 Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), line 25 the California Endangered Species Act (Chapter 1.5 (commencing line 26 with Section 2050) of Division 3 of the Fish and Game Code), or line 27 the Native Plant Protection Act (Chapter 10 (commencing with line 28 Section 1900) of Division 2 of the Fish and Game Code), unless line 29 the development within the habitat has been authorized by a permit line 30 or approval issued pursuant to federal or other state law. line 31 (J)  Lands under conservation easement.
line 32 (7)  The development is not located on a site where an y of the line 33 following apply:
line 34 (A)  The de velopment w ould require the demolition of the line 35 following types of housing:
line 36 (i)  Housing that is subject to a recorded co venant, ordinance, line 37 or la w that restricts rents to le vels af fordable to persons and line 38 families of moderate, low, or very low income.
line 39 (ii)  Housing that is subject to any form of rent or price control line 40 through a public entity’s valid exercise of its police power. 98 SB 423 — 13 —

line 1 (iii)  Housing that has been occupied by tenants within the past line 2 10 years.
line 3 (B)  The site was previously used for housing that was occupied line 4 by tenants that w as demolished within 10 years before the line 5 development proponent submits an application under this section. line 6 (C)  The development would require the demolition of a historic line 7 structure that w as placed on a national, state, or local historic line 8 register.
line 9 (D)  The property contains housing units that are occupied by line 10 tenants, and units at the property are, or were, subsequently offered line 11 for sale to the general public by the subdivider or subsequent owner line 12 of the property.
line 13 (8)  Except as pro vided in paragraph (9), a proponent of a line 14 development project approved by a local government pursuant to line 15 this section shall require in contracts with construction contractors, line 16 and shall certify to the local go vernment, that the follo wing line 17 standards specified in this paragraph will be met in project line 18 construction, as applicable:
line 19 (A)  A development that is not in its entirety a public w ork for line 20 purposes of Chapter 1 (commencing with Section 1720) of Part 7 line 21 of Di vision 2 of the Labor Code and appro ved by a local line 22 government pursuant to Article 2 (commencing with Section line 23 65912.110) or Article 3 (commencing with Section 65912.120) line 24 shall be subject to all of the following:
line 25 (i)  All construction workers employed in the e xecution of the line 26 development shall be paid at least the general pre vailing rate of line 27 per diem w ages for the type of w ork and geographic area, as line 28 determined by the Director of Industrial Relations pursuant to line 29 Sections 1773 and 1773.9 of the Labor Code, e xcept that line 30 apprentices registered in programs appro ved by the Chief of the line 31 Division of Apprenticeship Standards may be paid at least the line 32 applicable apprentice prevailing rate.
line 33 (ii)  The development proponent shall ensure that the prevailing line 34 wage requirement is included in all contracts for the performance line 35 of the work for those portions of the de velopment that are not a line 36 public work.
line 37 (iii)  All contractors and subcontractors for those portions of the line 38 development that are not a public work shall comply with both of line 39 the following:
98 — 14 — SB 423

line 1 (I)  Pay to all construction w orkers employed in the e xecution line 2 of the work at least the general prevailing rate of per diem wages, line 3 except that apprentices re gistered in programs appro ved by the line 4 Chief of the Division of Apprenticeship Standards may be paid at line 5 least the applicable apprentice prevailing rate. line 6 (II)  Maintain and v erify payroll records pursuant to Section line 7 1776 of the Labor Code and mak e those records a vailable for line 8 inspection and copying as provided in that section. This subclause line 9 does not apply if all contractors and subcontractors performing line 10 work on the development are subject to a project labor agreement line 11 that requires the payment of pre vailing wages to all construction line 12 workers emplo yed in the e xecution of the de velopment and line 13 provides for enforcement of that obligation through an arbitration line 14 procedure. F or purposes of this subclause, “project labor line 15 agreement” has the same meaning as set forth in paragraph (1) of line 16 subdivision (b) of Section 2500 of the Public Contract Code. line 17 (B)  (i)  The obligation of the contractors and subcontractors to line 18 pay prevailing wages pursuant to this paragraph may be enforced line 19 by any of the following:
line 20 (I)  The Labor Commissioner through the issuance of a ci vil line 21 wage and penalty assessment pursuant to Section 1741 of the Labor line 22 Code, which may be re viewed pursuant to Section 1742 of the line 23 Labor Code, within 18 months after the completion of the line 24 development.
line 25 (II)  An underpaid worker through an administrative complaint line 26 or civil action.
line 27 (III)  A joint labor-management committee through a civil action line 28 under Section 1771.2 of the Labor Code.
line 29 (ii)  If a civil wage and penalty assessment is issued pursuant to line 30 this paragraph, the contractor, subcontractor, and surety on a bond line 31 or bonds issued to secure the payment of w ages covered by the line 32 assessment shall be liable for liquidated damages pursuant to line 33 Section 1742.1 of the Labor Code.
line 34 (iii)  This paragraph does not apply if all contractors and line 35 subcontractors performing work on the de velopment are subject line 36 to a project labor agreement that requires the payment of prevailing line 37 wages to all construction w orkers employed in the e xecution of line 38 the development and provides for enforcement of that oblig ation line 39 through an arbitration procedure. F or purposes of this clause, line 40 “project labor agreement” has the same meaning as set forth in 98 SB 423 — 15 —

line 1 paragraph (1) of subdi vision (b) of Section 2500 of the Public line 2 Contract Code.
line 3 (C)  Notwithstanding subdivision (c) of Section 1773.1 of the line 4 Labor Code, the requirement that employer payments not reduce line 5 the obligation to pay the hourly straight time or o vertime wages line 6 found to be pre vailing does not apply to those portions of line 7 development that are not a public work if otherwise provided in a line 8 bona fide collective bargaining agreement covering the worker. line 9 (D)  The requirement of this paragraph to pay at least the general line 10 prevailing rate of per diem w ages does not preclude use of an line 11 alternative workweek schedule adopted pursuant to Section 511 line 12 or 514 of the Labor Code.
line 13 (E)  A development of 50 or more housing units approved by a line 14 local go vernment pursuant to this section shall meet all of the line 15 following labor standards:
line 16 (i)  The development proponent shall require in contracts with line 17 construction contractors and shall certify to the local government line 18 that each contractor of any tier who will employ construction craft line 19 employees or will let subcontracts for at least 1,000 hours shall line 20 satisfy the requirements in clauses (ii) and (iii). A construction line 21 contractor is deemed in compliance with clauses (ii) and (iii) if it line 22 is signatory to a valid collective bargaining agreement that requires line 23 utilization of re gistered apprentices and e xpenditures on health line 24 care for employees and dependents.
line 25 (ii)  A contractor with construction craft employees shall either line 26 participate in an apprenticeship program approved by the California line 27 Division of Apprenticeship Standards pursuant to Section 3075 of line 28 the Labor Code, or request the dispatch of apprentices from a line 29 state-approved apprenticeship program under the terms and line 30 conditions set forth in Section 1777.5 of the Labor Code. A line 31 contractor without construction craft emplo yees shall sho w a line 32 contractual oblig ation that its subcontractors comply with this line 33 clause.
line 34 (iii)  Each contractor with construction craft emplo yees shall line 35 make health care e xpenditures for each emplo yee in an amount line 36 per hour w orked on the de velopment equivalent to at least the line 37 hourly pro rata cost of a Co vered California Platinum le vel plan line 38 for two adults 40 years of age and tw o dependents 0 to 14 years line 39 of age for the Co vered California rating area in which the line 40 development is located. A contractor without construction craft 98 — 16 — SB 423

line 1 employees shall sho w a contractual oblig ation that its line 2 subcontractors comply with this clause. Qualifying e xpenditures line 3 shall be credited toward compliance with prevailing wage payment line 4 requirements set forth in this paragraph.
line 5 (iv)  (I)  The development proponent shall pro vide to the local line 6 government, on a monthly basis while its construction contracts line 7 on the development are being performed, a report demonstrating line 8 compliance with clauses (ii) and (iii). The reports shall be line 9 considered public records under the California Public Records Act line 10 (Division 10 (commencing with Section 7920.000) of Title 1), and line 11 shall be open to public inspection.
line 12 (II)  A development proponent that fails to provide the monthly line 13 report shall be subject to a civil penalty for each month for which line 14 the report has not been pro vided, in the amount of 10 percent of line 15 the dollar value of construction work performed by that contractor line 16 on the development in the month in question, up to a maximum line 17 of ten thousand dollars ($10,000). Any contractor or subcontractor line 18 that fails to comply with clauses (ii) and (iii) shall be subject to a line 19 civil penalty of two hundred dollars ($200) per day for each worker line 20 employed in contravention of clauses (ii) and (iii). line 21 (III)  Penalties may be assessed by the Labor Commissioner line 22 within 18 months of completion of the de velopment using the line 23 procedures for issuance of ci vil w age and penalty assessments line 24 specified in Section 1741 of the Labor Code, and may be reviewed line 25 pursuant to Section 1742 of the Labor Code. Penalties shall be line 26 deposited in the State Public Works Enforcement Fund established line 27 pursuant to Section 1771.3 of the Labor Code.
line 28 (v)  Each construction contractor shall maintain and v erify line 29 payroll records pursuant to Section 1776 of the Labor Code. Each line 30 construction contractor shall submit payroll records directly to the line 31 Labor Commissioner at least monthly in a format prescribed by line 32 the Labor Commissioner in accordance with subparagraph (A) of line 33 paragraph (3) of subdi vision (a) of Section 1771.4 of the Labor line 34 Code. The records shall include a statement of fringe benefits. line 35 Upon request by a joint labor-management cooperation committee line 36 established pursuant to the Federal Labor Management Cooperation line 37 Act of 1978 (29 U.S.C. Sec. 175a), the records shall be pro vided line 38 pursuant to subdivision (e) of Section 1776 of the Labor Code. line 39 (vi)  All construction contractors shall report an y change in line 40 apprenticeship program participation or health care e xpenditures 98 SB 423 — 17 —

line 1 to the local government within 10 business days, and shall reflect line 2 those changes on the monthly report. The reports shall be line 3 considered public records pursuant to the California Public Records line 4 Act (Division 10 (commencing with Section 7920.000) of Title 1) line 5 and shall be open to public inspection.
line 6 (vii)  A joint labor -management cooperation committee line 7 established pursuant to the Federal Labor Management Cooperation line 8 Act of 1978 (29 U.S.C. Sec. 175a) shall ha ve standing to sue a line 9 construction contractor for failure to make health care expenditures line 10 pursuant to clause (iii) in accordance with Section 218.7 or 218.8 line 11 of the Labor Code.
line 12 (9)  Notwithstanding paragraph (8), a development that is subject line 13 to approval pursuant to this section is exempt from any requirement line 14 to pay pre vailing w ages, use a w orkforce participating in an line 15 apprenticeship, or provide health care e xpenditures if it satisfies line 16 both of the following:
line 17 (A)  The project consists of 10 or fewer units. line 18 (B)  The project is not a public work for purposes of Chapter 1 line 19 (commencing with Section 1720) of P art 7 of Di vision 2 of the line 20 Labor Code.
line 21 (10)  The development shall not be upon an e xisting parcel of line 22 land or site that is governed under the Mobilehome Residency Law line 23 (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 line 24 of Division 2 of the Ci vil Code), the Recreational Vehicle Park line 25 Occupancy Law (Chapter 2.6 (commencing with Section 799.20) line 26 of Title 2 of P art 2 of Di vision 2 of the Ci vil Code), the line 27 Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) line 28 of Division 13 of the Health and Safety Code), or the Special line 29 Occupancy Parks Act (Part 2.3 (commencing with Section 18860) line 30 of Division 13 of the Health and Safety Code).
line 31 (b)  (1)  (A)  (i)  Before submitting an application for a line 32 development subject to the streamlined, ministerial appro val line 33 process described in subdivision (c), the development proponent line 34 shall submit to the local government a notice of its intent to submit line 35 an application. The notice of intent shall be in the form of a line 36 preliminary application that includes all of the information line 37 described in Section 65941.1, as that section read on January 1, line 38 2020.
line 39 (ii)  Upon receipt of a notice of intent to submit an application line 40 described in clause (i), the local go vernment shall eng age in a 98 — 18 — SB 423

line 1 scoping consultation re garding the proposed de velopment with line 2 any California Nati ve American tribe that is traditionally and line 3 culturally affiliated with the geographic area, as described in line 4 Section 21080.3.1 of the Public Resources Code, of the proposed line 5 development. In order to expedite compliance with this subdivision, line 6 the local government shall contact the Native American Heritage line 7 Commission for assistance in identifying an y California Nati ve line 8 American tribe that is traditionally and culturally affiliated with line 9 the geographic area of the proposed development. line 10 (iii)  The timeline for noticing and commencing a scoping line 11 consultation in accordance with this subdivision shall be as follows:
line 12 (I)  The local go vernment shall pro vide a formal notice of a line 13 development proponent’s notice of intent to submit an application line 14 described in clause (i) to each California Nati ve American tribe line 15 that is traditionally and culturally affiliated with the geographic line 16 area of the proposed development within 30 days of receiving that line 17 notice of intent. The formal notice pro vided pursuant to this line 18 subclause shall include all of the following:
line 19 (ia)  A description of the proposed development. line 20 (ib)  The location of the proposed development. line 21 (ic)  An in vitation to eng age in a scoping consultation in line 22 accordance with this subdivision.
line 23 (II)  Each California Native American tribe that receives a formal line 24 notice pursuant to this clause shall have 30 days from the receipt line 25 of that notice to accept the in vitation to eng age in a scoping line 26 consultation.
line 27 (III)  If the local go vernment receives a response accepting an line 28 invitation to eng age in a scoping consultation pursuant to this line 29 subdivision, the local go vernment shall commence the scoping line 30 consultation within 30 days of receiving that response. line 31 (B)  The scoping consultation shall recognize that California line 32 Native American tribes traditionally and culturally affiliated with line 33 a geographic area ha ve knowledge and expertise concerning the line 34 resources at issue and shall tak e into account the cultural line 35 significance of the resource to the culturally affiliated California line 36 Native American tribe.
line 37 (C)  The parties to a scoping consultation conducted pursuant line 38 to this subdivision shall be the local government and any California line 39 Native American tribe traditionally and culturally affiliated with line 40 the geographic area of the proposed development. More than one 98 SB 423 — 19 —

line 1 California Nati ve American tribe traditionally and culturally line 2 affiliated with the geographic area of the proposed de velopment line 3 may participate in the scoping consultation. Ho wever, the local line 4 government, upon the request of any California Native American line 5 tribe traditionally and culturally affiliated with the geographic area line 6 of the proposed development, shall engage in a separate scoping line 7 consultation with that California Nati ve American tribe. The line 8 development proponent and its consultants may participate in a line 9 scoping consultation process conducted pursuant to this subdivision line 10 if all of the following conditions are met:
line 11 (i)  The de velopment proponent and its consultants agree to line 12 respect the principles set forth in this subdivision. line 13 (ii)  The development proponent and its consultants eng age in line 14 the scoping consultation in good faith.
line 15 (iii)  The California Native American tribe participating in the line 16 scoping consultation approves the participation of the development line 17 proponent and its consultants. The California Nati ve American line 18 tribe may rescind its appro val at an y time during the scoping line 19 consultation, either for the duration of the scoping consultation or line 20 with respect to an y particular meeting or discussion held as part line 21 of the scoping consultation.
line 22 (D)  The participants to a scoping consultation pursuant to this line 23 subdivision shall comply with all of the following confidentiality line 24 requirements:
line 25 (i)  Section 7927.000.
line 26 (ii)  Section 7927.005.
line 27 (iii)  Subdivision (c) of Section 21082.3 of the Public Resources line 28 Code.
line 29 (iv)  Subdivision (d) of Section 15120 of Title 14 of the line 30 California Code of Regulations.
line 31 (v)  Any additional confidentiality standards adopted by the line 32 California Nati ve American tribe participating in the scoping line 33 consultation.
line 34 (E)  The California En vironmental Quality Act (Di vision 13 line 35 (commencing with Section 21000) of the Public Resources Code) line 36 shall not apply to a scoping consultation conducted pursuant to line 37 this subdivision.
line 38 (2)  (A)  If, after concluding the scoping consultation, the parties line 39 find that no potential tribal cultural resource would be affected by line 40 the proposed development, the development proponent may submit 98 — 20 — SB 423

line 1 an application for the proposed development that is subject to the line 2 streamlined, ministerial approval process described in subdivision line 3 (c).
line 4 (B)  If, after concluding the scoping consultation, the parties line 5 find that a potential tribal cultural resource could be af fected by line 6 the proposed de velopment and an enforceable agreement is line 7 documented between the California Native American tribe and the line 8 local government on methods, measures, and conditions for tribal line 9 cultural resource treatment, the development proponent may submit line 10 the application for a de velopment subject to the streamlined, line 11 ministerial approval process described in subdivision (c). The local line 12 government shall ensure that the enforceable agreement is included line 13 in the requirements and conditions for the proposed development. line 14 (C)  If, after concluding the scoping consultation, the parties line 15 find that a potential tribal cultural resource could be af fected by line 16 the proposed de velopment and an enforceable agreement is not line 17 documented between the California Native American tribe and the line 18 local government regarding methods, measures, and conditions line 19 for tribal cultural resource treatment, the de velopment shall not line 20 be eligible for the streamlined, ministerial appro val process line 21 described in subdivision (c).
line 22 (D)  For purposes of this paragraph, a scoping consultation shall line 23 be deemed to be concluded if either of the following occur:
line 24 (i)  The parties to the scoping consultation document an line 25 enforceable agreement concerning methods, measures, and line 26 conditions to avoid or address potential impacts to tribal cultural line 27 resources that are or may be present.
line 28 (ii)  One or more parties to the scoping consultation, acting in line 29 good f aith and after reasonable ef fort, conclude that a mutual line 30 agreement on methods, measures, and conditions to a void or line 31 address impacts to tribal cultural resources that are or may be line 32 present cannot be reached.
line 33 (E)  If the de velopment or en vironmental setting substantially line 34 changes after the completion of the scoping consultation, the local line 35 government shall notify the California Nati ve American tribe of line 36 the changes and eng age in a subsequent scoping consultation if line 37 requested by the California Native American tribe. line 38 (3)  A local go vernment may only accept an application for line 39 streamlined, ministerial approval pursuant to this section if one of line 40 the following applies:
98 SB 423 — 21 —

line 1 (A)  A California Native American tribe that received a formal line 2 notice of the development proponent’s notice of intent to submit line 3 an application pursuant to subclause (I) of clause (iii) of line 4 subparagraph (A) of paragraph (1) did not accept the invitation to line 5 engage in a scoping consultation.
line 6 (B)  The California Native American tribe accepted an invitation line 7 to engage in a scoping consultation pursuant to subclause (II) of line 8 clause (iii) of subparagraph (A) of paragraph (1) but substantially line 9 failed to eng age in the scoping consultation after repeated line 10 documented attempts by the local go vernment to eng age the line 11 California Native American tribe.
line 12 (C)  The parties to a scoping consultation pursuant to this line 13 subdivision find that no potential tribal cultural resource will be line 14 affected by the proposed de velopment pursuant to subparagraph line 15 (A) of paragraph (2).
line 16 (D)  A scoping consultation between a California Nati ve line 17 American tribe and the local go vernment has occurred in line 18 accordance with this subdi vision and resulted in agreement line 19 pursuant to subparagraph (B) of paragraph (2).
line 20 (4)  A project shall not be eligible for the streamlined, ministerial line 21 process described in subdivision (c) if any of the following apply:
line 22 (A)  There is a tribal cultural resource that is on a national, state, line 23 tribal, or local historic register list located on the site of the project. line 24 (B)  There is a potential tribal cultural resource that could be line 25 affected by the proposed development and the parties to a scoping line 26 consultation conducted pursuant to this subdi vision do not line 27 document an enforceable agreement on methods, measures, and line 28 conditions for tribal cultural resource treatment, as described in line 29 subparagraph (C) of paragraph (2).
line 30 (C)  The parties to a scoping consultation conducted pursuant line 31 to this subdi vision do not agree as to whether a potential tribal line 32 cultural resource will be affected by the proposed development. line 33 (5)  (A)  If, after a scoping consultation conducted pursuant to line 34 this subdi vision, a project is not eligible for the streamlined, line 35 ministerial process described in subdi vision (c) for an y or all of line 36 the following reasons, the local government shall provide written line 37 documentation of that f act, and an e xplanation of the reason for line 38 which the project is not eligible, to the de velopment proponent line 39 and to any California Native American tribe that is a party to that line 40 scoping consultation:
98 — 22 — SB 423

line 1 (i)  There is a tribal cultural resource that is on a national, state, line 2 tribal, or local historic register list located on the site of the project, line 3 as described in subparagraph (A) of paragraph (4). line 4 (ii)  The parties to the scoping consultation have not documented line 5 an enforceable agreement on methods, measures, and conditions line 6 for tribal cultural resource treatment, as described in subparagraph line 7 (C) of paragraph (2) and subparagraph (B) of paragraph (4). line 8 (iii)  The parties to the scoping consultation do not agree as to line 9 whether a potential tribal cultural resource will be affected by the line 10 proposed de velopment, as described in subparagraph (C) of line 11 paragraph (4).
line 12 (B)  The written documentation pro vided to a de velopment line 13 proponent pursuant to this paragraph shall include information on line 14 how the development proponent may seek a conditional use permit line 15 or other discretionary approval of the development from the local line 16 government.
line 17 (6)  This section is not intended, and shall not be construed, to line 18 limit consultation and discussion between a local government and line 19 a California Nati ve American tribe pursuant to other applicable line 20 law, confidentiality pro visions under other applicable la w, the line 21 protection of religious exercise to the fullest extent permitted under line 22 state and federal law, or the ability of a California Native American line 23 tribe to submit information to the local government or participate line 24 in any process of the local government.
line 25 (7)  For purposes of this subdivision:
line 26 (A)  “Consultation” means the meaningful and timely process line 27 of seeking, discussing, and considering carefully the vie ws of line 28 others, in a manner that is cognizant of all parties’ cultural values line 29 and, where feasible, seeking agreement. Consultation between line 30 local governments and Native American tribes shall be conducted line 31 in a w ay that is mutually respectful of each party’ s sovereignty. line 32 Consultation shall also recognize the tribes’ potential needs for line 33 confidentiality with respect to places that ha ve traditional tribal line 34 cultural importance. A lead agenc y shall consult the tribal line 35 consultation best practices described in the “State of California line 36 Tribal Consultation Guidelines: Supplement to the General Plan line 37 Guidelines” prepared by the Office of Planning and Research. line 38 (B)  “Scoping” means the act of participating in early discussions line 39 or in vestigations between the local go vernment and California line 40 Native American tribe, and the de velopment proponent if 98 SB 423 — 23 —

line 1 authorized by the California Native American tribe, regarding the line 2 potential effects a proposed development could have on a potential line 3 tribal cultural resource, as defined in Section 21074 of the Public line 4 Resources Code, or California Native American tribe, as defined line 5 in Section 21073 of the Public Resources Code.
line 6 (8)  This subdivision shall not apply to any project that has been line 7 approved under the streamlined, ministerial appro val process line 8 provided under this section before the ef fective date of the act line 9 adding this subdivision.
line 10 (c)  (1)  If Notwithstanding any local law, if a local government’s line 11 planning director or an y equi valent local go vernment staf f, line 12 including all rele vant planning and permitting departments, line 13 equivalent position determines that a de velopment submitted line 14 pursuant to this section is consistent with the objecti ve planning line 15 standards specified in subdi vision (a) and pursuant to paragraph line 16 (3) of this subdivision, it the local government shall approve the line 17 development. Upon a determination that a development submitted line 18 pursuant to this section is in conflict with an y of the objecti ve line 19 planning standards specified in subdi vision (a), the local line 20 government staf f or rele vant local planning and permitting line 21 department that made the determination shall pro vide the line 22 development proponent written documentation of which standard line 23 or standards the de velopment conflicts with, and an e xplanation line 24 for the reason or reasons the de velopment conflicts with that line 25 standard or standards, as follows:
line 26 (A)  Within 60 days of submittal of the development to the local line 27 government pursuant to this section if the de velopment contains line 28 150 or fewer housing units.
line 29 (B)  Within 90 days of submittal of the development to the local line 30 government pursuant to this section if the de velopment contains line 31 more than 150 housing units.
line 32 (2)  If the local government’s planning director or any equivalent line 33 local go vernment staf f equivalent position f ails to pro vide the line 34 required documentation pursuant to paragraph (1), the development line 35 shall be deemed to satisfy the objecti ve planning standards line 36 specified in subdivision (a).
line 37 (3)  For purposes of this section, a de velopment is consistent line 38 with the objective planning standards specified in subdivision (a) line 39 if there is substantial evidence that would allow a reasonable person line 40 to conclude that the development is consistent with the objective 98 — 24 — SB 423

line 1 planning standards. The local government shall not determine that line 2 a development, including an application for a modification under line 3 subdivision (g), (h), is in conflict with the objecti ve planning line 4 standards on the basis that application materials are not included, line 5 if the application contains substantial e vidence that would allow line 6 a reasonable person to conclude that the development is consistent line 7 with the objective planning standards.
line 8 (4)  For purposes of e valuating consistency with the objecti ve line 9 planning standards under this section, the local government shall line 10 not require a development proponent to provide consultant studies line 11 requiring presubmittal scope approval by the local government or line 12 other studies or materials that are unnecessary to ascertain line 13 consistency with the objective planning standards. line 14 (4)  Upon submittal of an application for streamlined, ministerial line 15 approval pur suant to this section to the local go vernment, all line 16 departments of the local government that are required to issue an line 17 approval of the development prior to the granting of an entitlement line 18 shall comply with the requirements of this section within the time line 19 periods specified in paragraph (1).
line 20 (d)  (1)  Any design review of the development may be conducted line 21 by the local government’s planning commission or any equivalent line 22 board or commission responsible for design re view. That design line 23 review shall be objecti ve and be strictly focused on assessing line 24 compliance with criteria required for streamlined projects, as well line 25 as any reasonable objective design standards published and adopted line 26 by ordinance or resolution by a local jurisdiction before submission line 27 of a development application, and shall be broadly applicable to line 28 development within the jurisdiction. That design review shall be line 29 completed, and if the development is consistent with all objective line 30 standards, the local government shall approve the development as line 31 follows and shall not in an y way inhibit, chill, or preclude the line 32 ministerial appro val pro vided by this section or its ef fect, as line 33 applicable:
line 34 (A)  Within 90 days of submittal of the development to the local line 35 government pursuant to this section if the de velopment contains line 36 150 or fewer housing units.
line 37 (B)  Within 180 days of submittal of the de velopment to the line 38 local go vernment pursuant to this section if the de velopment line 39 contains more than 150 housing units.
98 SB 423 — 25 —

line 1 (2)  If the de velopment is consistent with the requirements of line 2 subparagraph (A) or (B) of paragraph (9) of subdi vision (a) and line 3 is consistent with all objecti ve subdivision standards in the local line 4 subdivision ordinance, an application for a subdi vision pursuant line 5 to the Subdivision Map Act (Division 2 (commencing with Section line 6 66410)) shall be exempt from the requirements of the California line 7 Environmental Quality Act (Division 13 (commencing with Section line 8 21000) of the Public Resources Code) and shall be subject to the line 9 public oversight timelines set forth in paragraph (1). line 10 (3)  If a local go vernment determines that a de velopment line 11 submitted pursuant to this section is in conflict with an y of the line 12 standards imposed pursuant to paragraph (1), it shall pro vide the line 13 development proponent written documentation of which objective line 14 standard or standards the de velopment conflicts with, and an line 15 explanation for the reason or reasons the de velopment conflicts line 16 with that objecti ve standard or standards consistent with the line 17 timelines described in paragraph (1) of subdivision (c). line 18 (e)  (1)  Notwithstanding an y other la w, a local go vernment, line 19 whether or not it has adopted an ordinance governing automobile line 20 parking requirements in multif amily de velopments, shall not line 21 impose automobile parking standards for a streamlined line 22 development that was approved pursuant to this section in any of line 23 the following instances:
line 24 (A)  The development is located within one-half mile of public line 25 transit.
line 26 (B)  The development is located within an architecturally and line 27 historically significant historic district.
line 28 (C)  When on-street parking permits are required but not offered line 29 to the occupants of the development.
line 30 (D)  When there is a car share vehicle located within one block line 31 of the development.
line 32 (2)  If the development does not fall within any of the categories line 33 described in paragraph (1), the local government shall not impose line 34 automobile parking requirements for streamlined de velopments line 35 approved pursuant to this section that e xceed one parking space line 36 per unit.
line 37 (f)  Notwithstanding any law , a local go vernment shall not line 38 require any of the following prior to approving a development that line 39 meets the requirements of this section:
98 — 26 — SB 423

line 1 (1)  Studies, information, or other materials that do not pertain line 2 directly to determining whether the development is consistent with line 3 the objective planning standards applicable to the development. line 4 (2)  (A)  Compliance with any standards necessary to receive a line 5 postentitlement permit.
line 6 (B)  This par agraph does not pr ohibit a local a gency fr om line 7 requiring compliance with any standar ds necessary to r eceive a line 8 postentitlement permit after a permit has been issued pursuant to line 9 this section.
line 10 (C)  For purposes of this par agraph, “postentitlement permit” line 11 has the same meaning as pr ovided in subpar agraph (A) of line 12 paragraph (3) of subdivision (j) of Section 65913.3. line 13 (f)
line 14 (g)  (1)  If a local government approves a development pursuant line 15 to this section, then, notwithstanding any other law, that approval line 16 shall not e xpire if the project satisfies both of the follo wing line 17 requirements:
line 18 (A)  The project includes public in vestment in housing line 19 affordability, beyond tax credits.
line 20 (B)  At least 50 percent of the units are affordable to households line 21 making at or below 80 percent of the area median income. line 22 (2)  (A)  If a local government approves a development pursuant line 23 to this section, and the project does not satisfy the requirements line 24 of subparagraphs (A) and (B) of paragraph (1), that approval shall line 25 remain v alid for three years from the date of the final action line 26 establishing that approval, or if litigation is filed challenging that line 27 approval, from the date of the final judgment upholding that line 28 approval. Approval shall remain v alid for a project pro vided line 29 construction activity, including demolition and grading acti vity, line 30 on the development site has begun pursuant to a permit issued by line 31 the local jurisdiction and is in progress. F or purposes of this line 32 subdivision, “in progress” means one of the following:
line 33 (i)  The construction has begun and has not ceased for more than line 34 180 days.
line 35 (ii)  If the de velopment requires multiple b uilding permits, an line 36 initial phase has been completed, and the project proponent has line 37 applied for and is diligently pursuing a b uilding permit for a line 38 subsequent phase, pro vided that once it has been issued, the line 39 building permit for the subsequent phase does not lapse. 98 SB 423 — 27 —

line 1 (B)  Notwithstanding subparagraph (A), a local government may line 2 grant a project a one-time, one-year e xtension if the project line 3 proponent can pro vide documentation that there has been line 4 significant progress toward getting the development construction line 5 ready, such as filing a building permit application. line 6 (3)  If the de velopment proponent requests a modification line 7 pursuant to subdi vision (g), (h), then the time during which the line 8 approval shall remain v alid shall be e xtended for the number of line 9 days between the submittal of a modification request and the date line 10 of its final approval, plus an additional 180 days to allow time to line 11 obtain a b uilding permit. If litig ation is filed relating to the line 12 modification request, the time shall be further extended during the line 13 pendency of the litigation. The extension required by this paragraph line 14 shall only apply to the first request for a modification submitted line 15 by the development proponent.
line 16 (4)  The amendments made to this subdi vision by the act that line 17 added this paragraph shall also be retroacti vely applied to line 18 developments approved prior to January 1, 2022. line 19 (g)
line 20 (h)  (1)  (A)  A de velopment proponent may request a line 21 modification to a development that has been appro ved under the line 22 streamlined, ministerial approval process provided in subdivision line 23 (c) if that request is submitted to the local government before the line 24 issuance of the final building permit required for construction of line 25 the development.
line 26 (B)  Except as provided in paragraph (3), the local government line 27 shall approve a modification if it determines that the modification line 28 is consistent with the objecti ve planning standards specified in line 29 subdivision (a) that were in effect when the original development line 30 application was first submitted.
line 31 (C)  The local go vernment shall e valuate an y modifications line 32 requested pursuant to this subdi vision for consistenc y with the line 33 objective planning standards using the same assumptions and line 34 analytical methodology that the local government originally used line 35 to assess consistency for the de velopment that was approved for line 36 streamlined, ministerial approval pursuant to subdivision (c). line 37 (D)  A guideline that was adopted or amended by the department line 38 pursuant to subdivision (m) (n) after a development was approved line 39 through the streamlined, ministerial approval process described in 98 — 28 — SB 423

line 1 subdivision (c) shall not be used as a basis to den y proposed line 2 modifications.
line 3 (2)  Upon receipt of the de velopment proponent’s application line 4 requesting a modification, the local go vernment shall determine line 5 if the requested modification is consistent with the objecti ve line 6 planning standard and either appro ve or den y the modification line 7 request within 60 days after submission of the modification, or line 8 within 90 days if design review is required.
line 9 (3)  Notwithstanding paragraph (1), the local go vernment may line 10 apply objective planning standards adopted after the development line 11 application was first submitted to the requested modification in line 12 any of the following instances:
line 13 (A)  The development is revised such that the total number of line 14 residential units or total square footage of construction changes line 15 by 15 percent or more. The calculation of the square footage of line 16 construction changes shall not include underground space. line 17 (B)  The development is revised such that the total number of line 18 residential units or total square footage of construction changes line 19 by 5 percent or more and it is necessary to subject the development line 20 to an objecti ve standard be yond those in ef fect when the line 21 development application w as submitted in order to mitig ate or line 22 avoid a specific, adv erse impact, as that term is defined in line 23 subparagraph (A) of paragraph (1) of subdi vision (j) of Section line 24 65589.5, upon the public health or safety and there is no feasible line 25 alternative method to satisfactorily mitigate or avoid the adverse line 26 impact. The calculation of the square footage of construction line 27 changes shall not include underground space.
line 28 (C)  (i)  Objective building standards contained in the California line 29 Building Standards Code (T itle 24 of the California Code of line 30 Regulations), including, b ut not limited to, b uilding plumbing, line 31 electrical, fire, and grading codes, may be applied to all line 32 modification applications that are submitted prior to the first line 33 building permit application. Those standards may be applied to line 34 modification applications submitted after the first building permit line 35 application if agreed to by the development proponent. line 36 (ii)  The amendments made to clause (i) by the act that added line 37 clause (i) shall also be retroacti vely applied to modification line 38 applications submitted prior to January 1, 2022. line 39 (4)  The local go vernment’s review of a modification request line 40 pursuant to this subdivision shall be strictly limited to determining 98 SB 423 — 29 —

line 1 whether the modification, including any modification to previously line 2 approved density bonus concessions or w aivers, modify the line 3 development’s consistency with the objective planning standards line 4 and shall not reconsider prior determinations that are not affected line 5 by the modification.
line 6 (h)
line 7 (i)  (1)  A local go vernment shall not adopt or impose an y line 8 requirement, including, b ut not limited to, increased fees or line 9 inclusionary housing requirements, that applies to a project solely line 10 or partially on the basis that the project is eligible to recei ve line 11 ministerial or streamlined approval pursuant to this section. line 12 (2)  (A)  A local go vernment shall issue a subsequent permit line 13 required for a de velopment appro ved under this section if the line 14 application substantially complies with the development as it was line 15 approved pursuant to subdi vision (c). Upon receipt of an line 16 application for a subsequent permit, the local go vernment shall line 17 process the permit without unreasonable delay and shall not impose line 18 any procedure or requirement that is not imposed on projects that line 19 are not approved pursuant to this section. The local government line 20 shall consider the application for subsequent permits based upon line 21 the objective standards specified in an y state or local la ws that line 22 were in ef fect when the original de velopment application w as line 23 submitted, unless the development proponent agrees to a change line 24 in objecti ve standards. Issuance of subsequent permits shall line 25 implement the appro ved development, and re view of the permit line 26 application shall not inhibit, chill, or preclude the de velopment. line 27 For purposes of this paragraph, a “subsequent permit” means a line 28 permit required subsequent to receiving approval under subdivision line 29 (c), and includes, b ut is not limited to, demolition, grading, line 30 encroachment, and building permits and final maps, if necessary. line 31 (B)  The amendments made to subparagraph (A) by the act that line 32 added this subparagraph shall also be retroacti vely applied to line 33 subsequent permit applications submitted prior to January 1, 2022. line 34 (3)  (A)  If a public impro vement is necessary to implement a line 35 development that is subject to the streamlined, ministerial approval line 36 pursuant to this section, including, b ut not limited to, a bic ycle line 37 lane, sidewalk or w alkway, public transit stop, dri veway, street line 38 paving or overlay, a curb or gutter, a modified intersection, a street line 39 sign or street light, landscape or hardscape, an abo ve-ground or line 40 underground utility connection, a w ater line, fire h ydrant, storm 98 — 30 — SB 423

line 1 or sanitary sewer connection, retaining wall, and any related work, line 2 and that public improvement is located on land owned by the local line 3 government, to the e xtent that the public impro vement requires line 4 approval from the local go vernment, the local go vernment shall line 5 not exercise its discretion over any approval relating to the public line 6 improvement in a manner that would inhibit, chill, or preclude the line 7 development.
line 8 (B)  If an application for a public impro vement described in line 9 subparagraph (A) is submitted to a local go vernment, the local line 10 government shall do all of the following:
line 11 (i)  Consider the application based upon any objective standards line 12 specified in an y state or local la ws that were in ef fect when the line 13 original development application was submitted. line 14 (ii)  Conduct its review and approval in the same manner as it line 15 would evaluate the public impro vement if required by a project line 16 that is not eligible to recei ve ministerial or streamlined appro val line 17 pursuant to this section.
line 18 (C)  If an application for a public impro vement described in line 19 subparagraph (A) is submitted to a local go vernment, the local line 20 government shall not do either of the following:
line 21 (i)  Adopt or impose an y requirement that applies to a project line 22 solely or partially on the basis that the project is eligible to receive line 23 ministerial or streamlined approval pursuant to this section. line 24 (ii)  Unreasonably delay in its consideration, review, or approval line 25 of the application.
line 26 (i)
line 27 (j)  (1)  This section shall not affect a development proponent’s line 28 ability to use any alternative streamlined by right permit processing line 29 adopted by a local go vernment, including the pro visions of line 30 subdivision (i) of Section 65583.2.
line 31 (2)  This section shall not pre vent a de velopment from also line 32 qualifying as a housing de velopment project entitled to the line 33 protections of Section 65589.5. This paragraph does not constitute line 34 a change in, but is declaratory of, existing law. line 35 (j)
line 36 (k)  The California En vironmental Quality Act (Di vision 13 line 37 (commencing with Section 21000) of the Public Resources Code) line 38 does not apply to actions taken by a state agency, local government, line 39 or the San Francisco Bay Area Rapid Transit District to:
98 SB 423 — 31 —

line 1 (1)  Lease, con vey, or encumber land o wned by the local line 2 government or the San Francisco Bay Area Rapid Transit District line 3 or to f acilitate the lease, con veyance, or encumbrance of land line 4 owned by the local government, or for the lease of land owned by line 5 the San Francisco Bay Area Rapid Transit District in association line 6 with an eligible TOD project, as defined pursuant to Section line 7 29010.1 of the Public Utilities Code, nor to an y decisions line 8 associated with that lease, or to pro vide financial assistance to a line 9 development that recei ves streamlined appro val pursuant to this line 10 section that is to be used for housing for persons and f amilies of line 11 very low, low, or moderate income, as defined in Section 50093 line 12 of the Health and Safety Code.
line 13 (2)  Approve improvements located on land owned by the local line 14 government or the San Francisco Bay Area Rapid Transit District line 15 that are necessary to implement a de velopment that recei ves line 16 streamlined approval pursuant to this section that is to be used for line 17 housing for persons and f amilies of v ery low, low, or moderate line 18 income, as defined in Section 50093 of the Health and Safety Code. line 19 (k)
line 20 (l)  For purposes of establishing the total number of units in a line 21 development under this chapter , a de velopment or de velopment line 22 project includes both of the following:
line 23 (1)  All projects developed on a site, re gardless of when those line 24 developments occur.
line 25 (2)  All projects developed on sites adjacent to a site developed line 26 pursuant to this chapter if, after January 1, 2023, the adjacent site line 27 had been subdi vided from the site de veloped pursuant to this line 28 chapter.
line 29 (l)
line 30 (m)  For purposes of this section, the follo wing terms have the line 31 following meanings:
line 32 (1)  “Affordable housing cost” has the same meaning as set forth line 33 in Section 50052.5 of the Health and Safety Code. line 34 (2)  (A)  Subject to the qualification provided by subparagraphs line 35 (B) and (C), “affordable rent” has the same meaning as set forth line 36 in Section 50053 of the Health and Safety Code. line 37 (B)  For a development for which an application pursuant to this line 38 section was submitted prior to January 1, 2019, that includes 500 line 39 units or more of housing, and that dedicates 50 percent of the total line 40 number of units, before calculating any density bonus, to housing 98 — 32 — SB 423

line 1 affordable to households making at, or belo w, 80 percent of the line 2 area median income, affordable rent for at least 30 percent of these line 3 units shall be set at an affordable rent as defined in subparagraph line 4 (A) and “af fordable rent” for the remainder of these units shall line 5 mean a rent that is consistent with the maximum rent levels for a line 6 housing development that receives an allocation of state or federal line 7 low-income housing tax credits from the California Tax Credit line 8 Allocation Committee.
line 9 (C)  For a de velopment that dedicates 100 percent of units, line 10 exclusive of a manager’s unit or units, to lower income households, line 11 “affordable rent” shall mean a rent that is consistent with the line 12 maximum rent levels stipulated by the public program pro viding line 13 financing for the development.
line 14 (3)  “Department” means the Department of Housing and line 15 Community Development.
line 16 (4)  “Development proponent” means the developer who submits line 17 a housing development project application to a local government line 18 under the streamlined, ministerial review process pursuant to this line 19 section.
line 20 (5)  “Completed entitlements” means a housing de velopment line 21 that has received all the required land use approvals or entitlements line 22 necessary for the issuance of a building permit. line 23 (6)  “Health care e xpenditures” include contrib utions under line 24 Section 401(a), 501(c), or 501(d) of the Internal Re venue Code line 25 and payments to ward “medical care, ” as defined in Section line 26 213(d)(1) of the Internal Revenue Code.
line 27 (7)  “Housing development project” has the same meaning as in line 28 Section 65589.5.
line 29 (8)  “Locality” or “local government” means a city, including a line 30 charter city, a county , including a charter county , or a city and line 31 county, including a charter city and county.
line 32 (9)  “Moderate-income housing units” means housing units with line 33 an af fordable housing cost or af fordable rent for persons and line 34 families of moderate income, as that term is defined in Section line 35 50093 of the Health and Safety Code.
line 36 (10)  “Objective planning standards” shall not include standards line 37 in the California Building Standards Code (T itle 24 of the line 38 California Code of Regulations), local building codes, fire codes, line 39 noise ordinances, other codes requiring detailed technical line 40 specifications, studies that are evaluated with subsequent permits, 98 SB 423 — 33 —

line 1 or other standards that are not reasonably ascertainable by the local line 2 government within the time limits set forth in subdivisions (c) and line 3 (d). Excluded objecti ve planning standards include, b ut are not line 4 limited to, construction logistics plans, plumbing plans, electrical line 5 plans, grading, excavation plans, geotechnical studies, and offsite line 6 public improvement plans.
line 7 (11)
line 8 (10)  “Production report” means the information reported line 9 pursuant to subparagraph (H) of paragraph (2) of subdi vision (a) line 10 of Section 65400.
line 11 (12)
line 12 (11)  “State agenc y” includes e very state office, officer , line 13 department, division, bureau, board, and commission, but does not line 14 include the California State Uni versity or the Uni versity of line 15 California.
line 16 (13)
line 17 (12)  “Reporting period” means either of the following:
line 18 (A)  The first half of the re gional housing needs assessment line 19 cycle.
line 20 (B)  The last half of the regional housing needs assessment cycle. line 21 (14)
line 22 (13)  “Urban uses” means an y current or former residential, line 23 commercial, public institutional, transit or transportation passenger line 24 facility, or retail use, or any combination of those uses. line 25 (m)
line 26 (n)  The department may re view, adopt, amend, and repeal line 27 guidelines to implement uniform standards or criteria that line 28 supplement or clarify the terms, references, or standards set forth line 29 in this section. Any guidelines or terms adopted pursuant to this line 30 subdivision shall not be subject to Chapter 3.5 (commencing with line 31 Section 11340) of Part 1 of Division 3 of Title 2 of the Government line 32 Code.
line 33 (n)
line 34 (o)  The determination of whether an application for a line 35 development is subject to the streamlined ministerial appro val line 36 process provided by subdivision (c) is not a “project” as defined line 37 in Section 21065 of the Public Resources Code.
line 38 (o)
line 39 (p)  Notwithstanding any law, for purposes of this section and line 40 for development on property owned by or leased to the state, the 98 — 34 — SB 423

line 1 Department of General Services may act in the place of a locality line 2 or local government, at the discretion of the department. line 3 (p)
line 4 (q)  The pro visions of clause (iii) of subparagraph (E) of line 5 paragraph (8) of subdivision (a) relating to health care expenditures line 6 are distinct and se verable from the remaining pro visions of this line 7 section. Ho wever, the remaining portions of paragraph (8) of line 8 subdivision (a) are a material and integral part of this section and line 9 are not severable. If any provision or application of paragraph (8) line 10 of subdivision (a) is held invalid, this entire section shall be null line 11 and void.
line 12 (q)
line 13 (r)  It is the polic y of the state that this section be interpreted line 14 and implemented in a manner to afford the fullest possible weight line 15 to the interest of, and the appro val and pro vision of, increased line 16 housing supply.
line 17 SEC. 3. The Legislature finds and declares that ensuring access line 18 to affordable housing is a matter of state wide concern and is not line 19 a municipal affair as that term is used in Section 5 of Article XI line 20 of the California Constitution. Therefore, Section 2 of this act line 21 amending Section 65913.4 of the Government Code applies to all line 22 cities, including charter cities.
line 23 SEC. 4. No reimbursement is required by this act pursuant to line 24 Section 6 of Article XIIIB of the California Constitution because line 25 a local agency or school district has the authority to le vy service line 26 charges, fees, or assessments sufficient to pay for the program or line 27 level of service mandated by this act or because costs that may be line 28 incurred by a local agenc y or school district will be incurred line 29 because this act creates a ne w crime or infraction, eliminates a line 30 crime or infraction, or changes the penalty for a crime or infraction, line 31 within the meaning of Section 17556 of the Government Code, or line 32 changes the definition of a crime within the meaning of Section 6 line 33 of Article XIII B of the California Constitution.

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98 SB 423 — 35 —

AMENDED IN ASSEMBLY APRIL 10, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 1035
Introduced by Assembly Member Muratsuchi
February 15, 2023
An act to add Section 798.30.7 to the Ci vil Code, relating to mobilehomes.
legislative counsel’s digest
AB 1035, as amended, Muratsuchi. Mobilehome parks: rent caps.

Existing la w, the Mobilehome Residenc y La w, prescribes v arious terms and conditions of tenancies in mobilehome parks. Existing la w defines “tenancy” for these purposes as the right of a homeo wner to use a site within a mobilehome park on which to locate, maintain, and occupy a mobilehome for human habitation, including the use of the services and facilities of the park. Existing law, prohibits, with certain exceptions, the management of a mobilehome park from increasing the gross rental rate for a tenanc y in a qualified mobilehome park, as defined, more than 3% plus the percentage change in the cost of living, or 5%, whichever is lower, of the lowest gross rental rate char ged for a tenancy at any time during the 12 months prior to the ef fective date of the increase, subject to specified conditions. Existing la w defines “qualified mobilehome park” for these purposes as a mobilehome park that is located within and go verned by the jurisdictions of 2 or more incorporated cities.

This bill w ould enact the Mobilehome Affordability Act. The bill would prohibit the management of a mobilehome park from increasing the gross rental rate for a tenanc y for a mobilehome space more than 3% plus the percentage change in the cost of li ving, as defined, o ver

98 the course of any 12-month period, as specified. The bill would prohibit management from increasing the gross rental rate for a tenancy in more than 2 increments o ver a 12-month period, after the tenant maintains the tenanc y o ver a 12-month period. The bill w ould prohibit management from imposing an increase in rent on a prospecti ve purchaser or homeowner that purchases a mobilehome if the purchase qualifies as an in-place transfer , as specified. The bill w ould exempt specified mobilehome spaces from these provisions. The
This bill would specify that these provisions apply to rent increases for mobilehome spaces occurring on or after January 1, 2023. The bill would provide that in the event that management increased the rent by more than the amount specified abo ve between January 1, 2023, and January 1, 2024, then the applicable rent on January 1, 2024, is the rent as of January 1, 2023, plus the maximum permissible increase, and that management is not liable to the homeowner for any corresponding rent overpayment. The bill would provide that its provisions shall not impair, alter, or c hange any r ental term or obligation contained in a r ental agreement in effect between management and a resident as of January 1, 2024, and which was entered into or became effective before January 1, 2023, e xcept as described. The bill w ould void any waiver of the rights provided under these provisions. The bill would authorize a local government to adopt or maintain an ordinance, rule, re gulation, or initiative measure that establishes a maximum amount that may be charged for rent, or other regulations for a tenancy. The bill would not apply to a mobilehome park when a local go vernment has adopted an ordinance, rule, regulation, or initiative measure prior to the ef fective date of the bill before January 1, 2024, that establishes a maximum amount that may be char ged by management for rent or otherwise regulates the rental rate for a mobilehome tenanc y. tenancy in that mobilehome park.

This bill would state that its provisions are severable.

Vote: majority. Appropriation: no. Fiscal committee: no.​ State-mandated local program: no.​
The people of the State of California do enact as follows:
line 1 SECTION 1. This act shall be known, and may be cited, as the line 2 Mobilehome Affordability Act.
line 3 SECTION 1.
line 4 SEC. 2. Section 798.30.7 is added to the Civil Code, to read:
98 — 2 — AB 1035

line 1 798.30.7. (a)  (1)  Subject to par agraph (2) and e xcept as line 2 provided in subdivision (b), management shall not, over the course line 3 of any 12-month period, increase the gross rental rate for a tenancy line 4 in a mobilehome park by more than 3 percent plus the percentage line 5 change in the cost of li ving, or 5 percent, whiche ver is lower, of line 6 the lowest gross rental rate char ged for the tenanc y at an y time line 7 during the 12 months prior to the effective date of the increase. line 8 (2)  If the same homeo wner maintains a tenanc y o ver an y line 9 12-month period, the gross rental rate for the tenancy shall not be line 10 increased in more than two increments over that 12-month period, line 11 subject to the other restrictions of this subdivision governing gross line 12 rental rate increases.
line 13 (b)  (1)  Except as provided in paragraph (2), for a new tenancy line 14 in which no homeowner from the prior tenancy remains in lawful line 15 possession of the mobilehome space, management may establish line 16 the an initial rental rate not subject to for the new tenancy without line 17 complying with subdivision (a). Subdivision However, subdivision line 18 (a) shall be applicable to subsequent increases of the r ental rate line 19 after that initial rental rate has been established, except as unless line 20 otherwise provided in this section.
line 21 (2)  Notwithstanding paragraph (1), management shall not impose line 22 an increase in rent on a prospective purchaser or homeowner that line 23 purchases a mobilehome if the purchase qualifies as an in-place line 24 transfer. Subdivision (a) shall apply to the ne w tenancy created line 25 after an in-place transfer and the initial rental rate shall be set at line 26 the rental rate of the previous tenancy.
line 27 (c)  Management shall provide notice of any increase in the rental line 28 rate, pursuant to subdi vision (a), r ate to each homeo wner in line 29 accordance with Section 798.30.
line 30 (d)  (1)  This section shall not apply to a tenancy for any of the line 31 following:
line 32 (1)
line 33 (A)  A mobilehome space restricted by deed, re gulatory line 34 restriction contained in an agreement with a governmental agency, line 35 or other recorded document as affordable housing for persons and line 36 families of v ery lo w, lo w, or moderate income, as defined in line 37 Section 50093 of the Health and Safety Code, or subject to an line 38 agreement that provides housing subsidies for affordable housing line 39 for persons and families of very low, low, or moderate income, as 98 AB 1035 — 3 —

line 1 defined in Section 50093 of the Health and Safety Code or line 2 comparable federal statutes.
line 3 (2)
line 4 (B)  A mobilehome space subject to an y ordinance, rule, line 5 regulation, or initiative measure that restricts annual increases in line 6 the rental rate to an amount less than that provided in subdivision line 7 (a).
line 8 (3)
line 9 (C)  A mobilehome space within a resident-owned mobilehome line 10 park, as defined in Section 799.
line 11 (4)
line 12 (D)  A mobilehome space occupied by a resident who is not a line 13 homeowner, including, b ut not limited to, an y spaces that are line 14 directly rented by management. The rental amount to be charged line 15 for any such spaces shall be governed by Sections 1946.2, 1947.12 line 16 and 1947.13.
line 17 (2)  This section shall not apply to a mobilehome park when a line 18 local government has adopted an or dinance, rule, regulation, or line 19 initiative measur e befor e J anuary 1, 2024, that establishes a line 20 maximum amount that may be c harged by mana gement for rent line 21 or otherwise regulates the rental rate for a mobilehome tenancy line 22 in that mobilehome park.
line 23 (3)  This section shall not impair , alter, or c hange any r ental line 24 term or obligation contained in a r ental a greement in ef fect line 25 between management and a resident as of J anuary 1, 2024, and line 26 which was entered into or became effective before January 1, 2023. line 27 However, any r ental pr ovisions contained in those a greements line 28 shall be subject to the provisions of this section following the date line 29 upon whic h the term of the a greement has ended or has been line 30 renewed or extended.
line 31 (e)  (1)  This Except as provided in subdivision (d), this section line 32 shall apply to all rent increases occurring on or after January 1, line 33 2023.
line 34 (2)  In the event that management has increased the rent by more line 35 than the amount permissible under subdivision (a) between January line 36 1, 2023, and January 1, 2024, both of the following shall apply:
line 37 (A)  The applicable rent on January 1, 2024, shall be the rent as line 38 of January 1, 2023, plus the maximum permissible increase under line 39 subdivision (a).
98 — 4 — AB 1035

line 1 (B)  Management shall not be liable to a homeo wner for an y line 2 corresponding rent overpayment.
line 3 (f)  Any waiver of the rights under this section shall be v oid as line 4 contrary to public policy.
line 5 (g)  For the purposes of this section:
line 6 (1)  “Consumer Price Inde x for All Urban Consumers for All line 7 Items” means the following:
line 8 (A)  The Consumer Price Inde x for All Urban Consumers for line 9 All Items (CPI-U) for the metropolitan area in which the property line 10 is located, as published by the United States Bureau of Labor line 11 Statistics, which are as follows:
line 12 (i)  The CPI-U for the Los Angeles-Long Beach-Anaheim line 13 metropolitan area co vering the Counties of Los Angeles and line 14 Orange.
line 15 (ii)  The CPI-U for the Ri verside-San Bernardo-Ontario line 16 metropolitan area co vering the Counties of Ri verside and San line 17 Bernardino.
line 18 (iii)  The CPI-U for the San Die go-Carlsbad metropolitan area line 19 covering the County of San Diego.
line 20 (iv)  The CPI-U for the San Francisco-Oakland-Hayw ard line 21 metropolitan area covering the Counties of Alameda, Contra Costa, line 22 Marin, San Francisco, and San Mateo. San Mateo, and Santa Clara. line 23 (v)  Any successor metropolitan area index to any of the indexes line 24 listed in clauses (i) to (iv), inclusive.
line 25 (B)  If the United States Bureau of Labor Statistics does not line 26 publish a CPI-U for the metropolitan area in which the property line 27 is located, the California Consumer Price Inde x for All Urban line 28 Consumers for All Items as published by the Department of line 29 Industrial Relations.
line 30 (C)  On or after January 1, 2024, if the United States Bureau of line 31 Labor Statistics publishes a CPI-U inde x for one or more line 32 metropolitan areas not listed in subparagraph (A), that CPI-U index line 33 shall apply in those areas with respect to rent increases that tak e line 34 effect on or after August 1 of the calendar year in which the line 35 12-month change in that CPI-U, as described in subparagraph (B) line 36 of paragraph (2), is first published.
line 37 (2)  (A)  “Percentage change in the cost of li ving” means the line 38 percentage change in the applicable CPI-U, as described in line 39 paragraph (1) and computed pursuant to subparagraph (B) of this line 40 paragraph.
98 AB 1035 — 5 —

line 1 (B)  (i)  For rent increases that tak e effect before August 1 of line 2 any calendar year, the following shall apply:
line 3 (I)  The percentage change shall be the percentage change in the line 4 amount published for April of the immediately preceding calendar line 5 year and April of the year before that.
line 6 (II)  If there is not an amount published in April for the applicable line 7 geographic area, the percentage change shall be the percentage line 8 change in the amount published for March of the immediately line 9 preceding calendar year and March of the year before that. line 10 (ii)  For rent increases that tak e effect on or after August 1 of line 11 any calendar year, the following shall apply:
line 12 (I)  The percentage change shall be the percentage change in the line 13 amount published for April of that calendar year and April of the line 14 immediately preceding calendar year.
line 15 (II)  If there is not an amount published in April for the applicable line 16 geographic area, the percentage change shall be the percentage line 17 change in the amount published for March of that calendar year line 18 and March of the immediately preceding calendar year. line 19 (iii)  The percentage change shall be rounded to the nearest line 20 one-tenth of 1 percent.
line 21 (3)  “In-place transfer” means the sale of a mobilehome pursuant line 22 to Article 7 (commencing with Section 798.70) where the line 23 mobilehome is transferred by a homeo wner to a subsequent line 24 homeowner and remains at the same mobilehome space. line 25 (h)  (1)  Nothing in this section af fects the authority of a local line 26 government to adopt or maintain an ordinance, rule, re gulation, line 27 or initiative measure that establishes a maximum amount that may line 28 be charged for rent, or other regulations for a tenancy. line 29 (2)  This section is not intended to express any policy regarding line 30 the appropriate, allo wable rental rate increase imposed by line 31 ordinance, rule, re gulation, or initiati ve measure re gulating rent line 32 increases, nor in connection with the continuation of an y line 33 mobilehome rent re gulation that a local go vernment has chosen line 34 to enact and administer , based upon the particular needs or line 35 economic conditions within the local jurisdiction. line 36 (i)  This section shall not apply to a mobilehome park when a line 37 local government that has adopted an ordinance, rule, regulation, line 38 or initiative measure prior to the effective date of this section that line 39 establishes a maximum amount that may be char ged by 98 — 6 — AB 1035

line 1 management for rent or otherwise re gulates the rental rate for a line 2 mobilehome tenancy.
line 3 SEC. 2.
line 4 SEC. 3. The provisions of this measure are se verable. If any line 5 provision of this measure or its application is held in valid, that line 6 invalidity shall not affect other provisions or applications that can line 7 be given effect without the invalid provision or application.

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98 AB 1035 — 7 —

SENATE BILL No. 252
Introduced by Senators Gonzalez, Stern, and Wiener
January 30, 2023
An act to amend Section 16642 of, and to add Section 7513.76 to, the Government Code, relating to public retirement systems. legislative counsel’s digest
SB 252, as introduced, Gonzalez. Public retirement systems: fossil fuels: divestment.

The California Constitution grants the retirement board of a public employee retirement system plenary authority and fiduciary responsibility for in vestment of mone ys and administration of the retirement fund and system. These pro visions qualify this grant of powers by reserving to the Le gislature the authority to prohibit investments if it is in the public interest and the prohibition satisfies standards of fiduciary care and loyalty required of a retirement board.

Existing law prohibits the boards of the Public Employees’ Retirement System and the State Teachers’ Retirement System from making ne w investments or rene wing e xisting in vestments of public emplo yee retirement funds in a thermal coal compan y, as defined. Existing la w requires the boards to liquidate investments in thermal coal companies on or before July 1, 2017, and requires the boards, in making a determination to liquidate in vestments, to constructively engage with thermal coal companies to establish whether the companies are transitioning their business models to adapt to clean energy generation.

Existing law provides that it does not require a board to take any action unless the board determines in good f aith that the action is consistent with the board’s fiduciary responsibilities established in the California Constitution.

99 This bill w ould prohibit the boards of the Public Emplo yees’ Retirement System and the State Teachers’ Retirement System from making new investments or rene wing existing investments of public employee retirement funds in a fossil fuel compan y, as defined. The bill would require the boards to liquidate in vestments in a fossil fuel company on or before July 1, 2030. The bill would temporarily suspend the abo ve-described liquidation pro vision upon a good f aith determination by the board that certain conditions materially impact normal market mechanisms for pricing assets, as specified, and would make this suspension pro vision inoperative on January 1, 2035. The bill would provide that it does not require a board to tak e any action unless the board determines in good f aith that the action is consistent with the board’s fiduciary responsibilities established in the California Constitution.

This bill would require the boards, commencing February 1, 2025, and annually thereafter , to file a report with the Le gislature and the Governor, containing specified information, including a list of fossil fuel companies of which the board has liquidated their in vestments.

The bill w ould pro vide that board members and other officers and employees shall be held harmless and be eligible for indemnification in connection with actions taken pursuant to the bill’s requirements, as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 7513.76 is added to the Government line 2 Code, to read:
line 3 7513.76. (a)  The Le gislature finds and declares all of the line 4 following:
line 5 (1)  The combustion of coal, oil, and natural gas, known as fossil line 6 fuels, is the single largest contributor to global climate change. line 7 (2)  Climate change affects all parts of the California economy line 8 and environment, and the Legislature has adopted numerous laws line 9 to mitigate greenhouse gas emissions and to adapt to a changing line 10 climate.
line 11 (3)  Fossil fuel companies’ plans to e xpand production, public line 12 relations campaigns, and ef forts to obstruct climate stabilization 99 — 2 — SB 252

line 1 policies are incompatible with California’s climate goals, and our line 2 obligation to current and future generations.
line 3 (4)  The production of fossil fuels and the ef fects of climate line 4 change resulting from the use of fossil fuels all lead to line 5 disproportionate adverse impacts on low-income communities and line 6 communities of color.
line 7 (5)  A transition a way from fossil fuels to clean ener gy will line 8 create greater emplo yment, support the economy , and impro ve line 9 public health.
line 10 (6)  The purpose of this section is to require the Public line 11 Employees’ Retirement System and the State Teachers’ Retirement line 12 System, consistent with, and not in violation of, their fiduciary line 13 responsibilities, to di vest their holdings of fossil fuel compan y line 14 investments as one part of the state’s broader efforts to decarbonize line 15 the California economy and to transition to clean, pollution-free line 16 energy resources.
line 17 (b)  As used in this section, the following definitions apply:
line 18 (1)  “Board” means the Board of Administration of the Public line 19 Employees’ Retirement System or the Teachers’ Retirement Board line 20 of the State Teachers’ Retirement System, as applicable. line 21 (2)  “Company” means a sole proprietorship, or ganization, line 22 association, corporation, partnership, v enture, or other entity , or line 23 its subsidiary or affiliate, that exists for profitmaking purposes or line 24 to otherwise secure economic advantage.
line 25 (3)  “Investment” means the purchase, ownership, or control of line 26 publicly issued stock, corporate bonds, or other debt instruments line 27 issued by a compan y. “In vestments” also includes purchase, line 28 ownership, or control of mutual funds and exchange-traded funds, line 29 unless the board is satisfied on reasonable grounds that a mutual line 30 fund or e xchange-traded fund is unlik ely to ha ve in e xcess of 2 line 31 percent of its assets, a veraged annually , directly or indirectly line 32 invested in fossil fuel companies.
line 33 (4)  “Public emplo yee retirement funds” means the Public line 34 Employees’ Retirement Fund described in Section 20062 of this line 35 code, and the Teachers’ Retirement Fund described in Section line 36 22167 of the Education Code.
line 37 (5)  “Fossil fuel” means petroleum oil, natural gas, and thermal line 38 coal. Thermal coal is coal used to generate electricity, such as that line 39 which is burned to create steam to run turbines. Thermal coal does line 40 not mean metallurgical coal or coking coal used to produce steel. 99 SB 252 — 3 —

line 1 (6)  “Fossil fuel company” means one of the 200 largest publicly line 2 traded fossil fuel companies, as established by carbon content in line 3 the companies’ proven oil, gas, and coal reserves. line 4 (c)  The board shall not make additional or new investments or line 5 renew existing investments of public emplo yee retirement funds line 6 in a fossil fuel company.
line 7 (d)  (1)  The board shall liquidate in vestments in a fossil fuel line 8 company on or before July 1, 2030.
line 9 (2)  Notwithstanding paragraph (1), this subdi vision shall be line 10 suspended upon a good f aith determination by the board that an line 11 act of God, w ar, or other unforeseeable e vent creates conditions line 12 that materially impact normal market mechanisms for pricing assets line 13 and shall only be reinstated upon a subsequent good faith finding line 14 of the board that market conditions have substantially returned to line 15 normal e x-ante. Upon such a finding, the board shall ha ve six line 16 months to liquidate an y remaining in vestments in a fossil fuel line 17 company.
line 18 (3)  Paragraph (2) shall remain in ef fect only until January 1, line 19 2035, and as of that date is inoperative.
line 20 (e)  (1)  Commencing February 1, 2025, and annually on line 21 February 1 thereafter, the board shall create a report that includes line 22 the following:
line 23 (A)  A list of fossil fuel companies of which the board has line 24 liquidated its investments pursuant to subdivision (d). line 25 (B)  A list of fossil fuel companies with which the board still line 26 has not liquidated its investments.
line 27 (C)  A list of fossil fuel companies of which the board has not line 28 liquidated its in vestments as a result of a determination made line 29 pursuant to subdivision (f) that a sale or transfer of investments is line 30 inconsistent with the fiduciary responsibilities of the board as line 31 described in Section 17 of Article XVI of the California line 32 Constitution and the board’ s findings adopted in support of that line 33 determination.
line 34 (D)  An analysis of methods and opportunities to rapidly and line 35 effectively reduce dependence on fossil fuels and transition to line 36 alternative ener gy sources in a realistic timeframe that a voids line 37 negatively contrib uting to economic conditions particularly line 38 damaging to public employee retirement funds and to overall net line 39 employment earnings of the state’s workforce.
99 — 4 — SB 252

line 1 (2)  The board shall submit the report to the Le gislature, in line 2 compliance with Section 9795, and to the Governor, and shall post line 3 the report on the board’s internet website.
line 4 (f)  Nothing in this section shall require a board to tak e action line 5 as described in this section unless the board determines in good line 6 faith that the action described in this section is consistent with the line 7 fiduciary responsibilities of the board described in Section 17 of line 8 Article XVI of the California Constitution.
line 9 SEC. 2. Section 16642 of the Government Code, as amended line 10 by Section 3 of Chapter 459 of the Statutes of 2019, is amended line 11 to read:
line 12 16642. (a)  Present, future, and former board members of the line 13 Public Emplo yees’ Retirement System or the State Teachers’ line 14 Retirement System, jointly and indi vidually, state officers and line 15 employees, research firms described in subdivision (d) of Section line 16 7513.6, and investment managers under contract with the Public line 17 Employees’ Retirement System or the State Teachers’ Retirement line 18 System shall be indemnified from the General Fund and held line 19 harmless by the State of California from all claims, demands, suits, line 20 actions, damages, judgments, costs, char ges, and e xpenses, line 21 including court costs and attorney’s fees, and against all liability, line 22 losses, and damages of any nature whatsoever that these present, line 23 future, or former board members, officers, emplo yees, research line 24 firms as described in subdivision (d) of Section 7513.6, or contract line 25 investment managers shall or may at an y time sustain by reason line 26 of an y decision to restrict, reduce, or eliminate in vestments line 27 pursuant to Sections 7513.6, 7513.7, 7513.74, and 7513.75. line 28 7513.75, and 7513.76.
line 29 (b)  This section shall remain in effect only until Section 7513.74 line 30 is repealed, and as of that date is repealed.
line 31 SEC. 3. Section 16642 of the Government Code, as added by line 32 Section 4 of Chapter 459 of the Statutes of 2019, is amended to line 33 read:
line 34 16642. (a)  Present, future, and former board members of the line 35 Public Emplo yees’ Retirement System or the State Teachers’ line 36 Retirement System, jointly and indi vidually, state officers and line 37 employees, research firms described in subdivision (d) of Section line 38 7513.6, and investment managers under contract with the Public line 39 Employees’ Retirement System or the State Teachers’ Retirement line 40 System shall be indemnified from the General Fund and held 99 SB 252 — 5 —

line 1 harmless by the State of California from all claims, demands, suits, line 2 actions, damages, judgments, costs, char ges, and e xpenses, line 3 including court costs and attorney’s fees, and against all liability, line 4 losses, and damages of any nature whatsoever that these present, line 5 future, or former board members, officers, emplo yees, research line 6 firms as described in subdivision (d) of Section 7513.6, or contract line 7 investment managers shall or may at an y time sustain by reason line 8 of an y decision to restrict, reduce, or eliminate in vestments line 9 pursuant to Sections 7513.6, 7513.7, and 7513.75. 7513.75, and line 10 7513.76.
line 11 (b)  This section shall become operati ve upon the repeal of line 12 Section 7513.74.

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99 — 6 — SB 252

AMENDED IN ASSEMBLY MARCH 29, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 882
Introduced by Assembly Member Davies
February 14, 2023
An act to amend Section 31113 of add and repeal Section 31123 of the Public Resources Code, relating to coastal resources. legislative counsel’s digest
AB 882, as amended, Davies. Coastal resources: Climate Ready Program: State Coastal Conservancy. Conservancy: advance payments.

Existing law establishes in the Natural Resources Agency the State Coastal Conserv ancy. Existing la w establishes the Climate Ready Program, administered by the conserv ancy, in order to address the impacts and potential impacts of climate change on resources within the conservancy’s jurisdiction. Existing law requires the conservancy, when allocating specified funds, to do specified things, including prioritizing projects that use natural infrastructure in coastal communities to help adapt to climate change and prioritizing projects that pro vide multiple public benefits, as specified. Existing law authorizes the conservancy to award certain grants for specified purposes.

Existing law establishes a pilot program, which is repealed on July 1, 2025, to explore possible improvements to the state’s existing advance payment pr actices for state-funded assistance gr ants. Existing law authorizes an administering state agency of a grant program to advance a payment to a r ecipient entity , whic h means a local a gency or a nongovernmental entity that is awar ded a gr ant by an administering state agency and with whom the administering state agency has entered into a contr act pursuant to that gr ant, in accor dance with specified

98 procedures. These procedures include stipulating an advance payment structure and request process within the gr ant agreement or contract and ensuring that the advance payment to the recipient entity does not exceed 25% of the total gr ant amount awarded to the recipient entity, except in specified circumstances.

This bill would permit the conservancy to authorize advance payments on a contract or grant awarded in accordance with the pilot program.

The bill would repeal this authorization on the date the pilot program is repealed.

This bill w ould require the conserv ancy to prioritize the re view of applications for specified projects and to process those applications no later than 45 days from the date the conservancy receives the application.

Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 31123 is added to the Public Resources line 2 Code, to read:
line 3 31123. (a)  The conservancy may authorize advance payments line 4 on a contr act or gr ant awar ded pur suant to this division in line 5 accordance with Section 11019.1 of the Government Code. line 6 (b)  This section shall r emain in ef fect only until the date that line 7 Section 11019.1 of the Go vernment Code is r epealed, and as of line 8 that date is repealed.
line 9 SECTION 1. Section 31113 of the Public Resources Code is line 10 amended to read:
line 11 31113. (a)  The Climate Ready Program is hereby established line 12 and shall be administered by the conservancy to address the impacts line 13 and potential impacts of climate change on resources within the line 14 conservancy’s jurisdiction.
line 15 (b)  In implementing this di vision, the conserv ancy may line 16 undertake projects within its jurisdiction, including, but not limited line 17 to, those that reduce greenhouse g as emissions, address e xtreme line 18 weather events, sea level rise, storm surge, beach and bluff erosion, line 19 salt w ater intrusion, flooding, and other coastal hazards that line 20 threaten coastal communities, infrastructure, and natural resources. line 21 (c)  Pursuant to the Climate Ready Program, the conserv ancy line 22 may award grants to public agencies and nonprofit or ganizations line 23 for activities authorized pursuant to subdivision (b). In awarding 98 — 2 — AB 882

line 1 the grants, the conservancy shall, to the extent allowed, prioritize line 2 projects that maximize public benefits and that accomplish either line 3 of the following:
line 4 (1)  Reduce emissions of greenhouse g ases, reduce hazards to line 5 harbors and ports, preserv e and enhance coastal wetlands and line 6 natural lands, conserv e biodi versity, and pro vide recreational line 7 opportunities.
line 8 (2)  Reduce flood risk and enhance fish and wildlife habitat, line 9 including projects with multiple benefits that remo ve sediment line 10 where the excavated material can be used to enhance shorelines line 11 or ecosystems.
line 12 (d)  (1)  The conservancy shall do all of the following:
line 13 (A)  Prioritize projects that use natural infrastructure in coastal line 14 communities to help adapt to climate change.
line 15 (B)  Prioritize projects that pro vide multiple public benefits, line 16 including, but not limited to, protection of communities, natural line 17 resources, and recreational opportunities.
line 18 (C)  Give consideration to projects in a v ariety of ecosystems line 19 along the state’ s coastline, including, b ut not limited to, the line 20 protection and e xpansion of coastal estuaries and lagoons that line 21 provide critical feeding and nursery habitat for juvenile fish species line 22 and foraging habitat for migratory waterfowl and other waterbirds, line 23 including eelgrass habitat.
line 24 (D)  Prioritize the review of applications for projects described line 25 in subparagraphs (A) and (B) and process those applications no line 26 later than 45 days from the date the conserv ancy recei ves the line 27 application.
line 28 (2)  The conservancy shall provide information to the Office of line 29 Planning and Research on an y projects funded pursuant to this line 30 subdivision to be considered for inclusion into the clearinghouse line 31 for climate adaption information, established pursuant to Section line 32 71360.
line 33 (3)  The conservancy may provide technical assistance to coastal line 34 communities to better assist them with their projects that use natural line 35 infrastructure.
line 36 (4)  For purposes of this subdi vision, “natural infrastructure” line 37 means using natural ecological systems or processes to reduce line 38 vulnerability to climate change related hazards, or other related line 39 climate change ef fects, while increasing the long-term adapti ve line 40 capacity of coastal and inland areas by perpetuating or restoring 98 AB 882 — 3 —

line 1 ecosystem services. This includes, b ut is not limited to, the line 2 conservation, preservation, or sustainable management of any form line 3 of aquatic or terrestrial v egetated open space, such as beaches, line 4 dunes, tidal marshes, reefs, seagrass, parks, rain gardens, and urban line 5 tree canopies. It also includes systems and practices that use or line 6 mimic natural processes, such as permeable pavements, bioswales, line 7 and other engineered systems, such as le vees that are combined line 8 with restored natural systems, to pro vide clean w ater, conserve line 9 ecosystem v alues and functions, and pro vide a wide array of line 10 benefits to people and wildlife.

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98 — 4 — AB 882

AMENDED IN ASSEMBLY MARCH 2, 2023
california legislature—2023–24 regular session
ASSEMBLY BILL No. 966
Introduced by Assembly Member Davies
February 14, 2023
An act to add and repeal Section 67.5 of the Harbors and Navigation Code, relating to public postsecondary education. shoreline erosion control.
legislative counsel’s digest
AB 966, as amended, Davies. Public postsecondary education:

University of California: research funding. Division of Boating and Waterways: report to the Le gislature: shoreline erosion control and public beach programs.

Existing law establishes the Division of Boating and Waterways within the Department of Parks and Recreation to, among other things, study and monitor beach erosion and means for the stabilization of beaches and shoreline areas.

Existing law generally authorizes the division to cooper ate with all relevant agencies of government for purposes of beach erosion control and stabilization of beaches and shoreline areas. Existing law, subject to funding availability , including the division’ s mana gement of any federal funds, requires the division to prepare plans for and construct erosion control or stabilization projects as its studies and investigations indicate to be necessary for beac h erosion control or stabilization of beaches and shor eline ar eas, and specifically authorizes se veral projects.

This bill would require the division to, no later than January 1, 2025, and in cooperation with the State Coastal Conservancy , prepare and

98 submit a joint r eport to the Le gislature on shor eline erosion control and public beac h restoration programs, as specified. The bill would require the report, among other things, to detail and discuss e xisting programs, e valuate the need for continued pr ojects and pr ogram application requirements, and identify the beac hes of the state that contain a critically eroded shoreline, as this bill would define the term.

This bill would repeal its provisions on January 1, 2026.

Existing la w establishes the Uni versity of California, under the administration of the Regents of the University of California, as one of the se gments of public postsecondary education in this state. The University of California pro vides instruction to students at its 10 campuses, which are located in Berk eley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco, Santa Barbara, and Santa Cruz.

This bill w ould state the intent of the Le gislature to enact future legislation that w ould enable the Uni versity of California, Irvine, to continue its research of beaches, including beach topography, erosion, sand depletion, and flood protection.

Vote: majority. Appropriation: no. Fiscal committee: no yes.​ State-mandated local program: no.​
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 67.5 is added to the Harbors and line 2 Navigation Code, to read:
line 3 67.5. (a)  The division shall, in cooper ation with the State line 4 Coastal Conservancy and pur suant to Section 9795 of the line 5 Government Code , pr epare and submit a joint r eport to the line 6 Legislature no later than J anuary 1, 2025, on shor eline erosion line 7 control and public beach restoration programs that does all of the line 8 following:
line 9 (1)  Details the r estoration, nourishment, and enhancement line 10 activities undertaken through these programs.
line 11 (2)  Discusses and e valuates the need for continued shor eline line 12 erosion and public beach restoration projects.
line 13 (3)  Reports on the effectiveness of these programs in addressing line 14 that need.
line 15 (4)  Discusses ways to increase natural sediment supply in order line 16 to decrease the need to nourish the state’s beaches, including, but 98 — 2 — AB 966

line 1 not limited to, an analysis of specific locations wher e structures line 2 may be removed or modified.
line 3 (5)  Evaluates if application requirements for the programs needs line 4 to be altered to allow for more applicants.
line 5 (6)  Identifies the beaches of the state that contain a critically line 6 eroded shoreline.
line 7 (b)  For the purposes of this section, “critically er oded line 8 shoreline” means a se gment of the shor eline wher e natur al line 9 environmental pr ocesses or human activity have caused or line 10 contributed to erosion and recession of the beach or dune system line 11 to such a degree that upland development, recreational interests, line 12 wildlife habitat, or important cultur al resources are threatened line 13 or lost. Critically eroded shorelines may also include peripher al line 14 segments or gaps between identified critically eroded areas that, line 15 although the y may be stable or slightly er osional now , their line 16 inclusion is necessary for continuity of management of the coastal line 17 system or for the design integrity of adjacent beach management line 18 projects.
line 19 (c)  This section shall remain in effect only until January 1, 2026, line 20 and as of that date is repealed.
line 21 SECTION 1. It is the intent of the Legislature to enact future line 22 legislation that would enable the University of California, Irvine, line 23 to continue its research of beaches, including beach topograph y, line 24 erosion, sand depletion, and flood protection.

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98 AB 966 — 3 —