Agenda packet — Legislative City Council Standing Subcommittee, September 26, 2023

Legislative City Council Standing Subcommittee
Special Meeting Agenda Packet
September 26, 2023
SPECIAL MEETING
City Hall Ross Annex, Conference Room 1600
4:00 PM
Valerie Amezcua
Subcommittee Member Mayor
Jessie Lopez
Subcommittee Member – Ward 3
David Penaloza
Subcommittee Member – Ward 6
Daniel Soto
Principal Management Analyst Gaston Flores
Management Analyst
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, contact Michael Ortiz, City ADA Program Coordinator, at (714) 6475624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found onthe City’s website – www.santaana.org/citymeetings.

CALL TO ORDER

ATTENDANCE
Valerie Amezcua, Subcommittee Member
Jessie Lopez, Subcommittee Member
David Penaloza, Subcommittee Member
Staff:

Daniel Soto, Principal Management Analyst
Gaston Flores, Management Analyst
ROLL CALL Daniel Soto, Principal Management
Analyst
PLEDGE OF ALLEGIANCE
PUBLIC COMMENTS
Public comments will be held during the beginning of the meeting for ALL comments on agenda items.

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To provide Public Comments: Submit via email to gflores@santaana.org NO LATER THAN one hour before the scheduled meeting.

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The public can begin joining the speaker queue a half hour prior to the meeting. Once a caller has entered the meeting, they will be placed in a holding queue. Callers will be prompted to speak in the order received. After the Recording Secretary confirms the last three digits of the caller’s phone number or Zoom ID and unmutes them, the caller must press *6 or microphone icon to speak. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak. In accordance with procedures, calls will not be accepted after the Public Comment Session begins.

ABOUT THE AGENDA
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WATCH A LIVE STREAM OR BROADCAST ONLY:

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CONSENT CALENDAR ITEMS

1. Excused Absences
Recommended Action: Excuse the absent members.
***END OF CONSENT CALENDAR ***
BUSINESS CALENDAR

2. Election of Chair and Vice Chair for the Legislative City Council Subcommittee.

Recommended Action: Select Chair and Vice Chair.

3. Receive Federal Legislative Updates
a. Holland & Knight – Leslie Pollner, Senior Policy Advisor Recommended Action: Receive report.

4. Receive State Legislative Updates
a. Townsend Public Affairs – Cori Takkinen, Vice President Recommended Action: Receive report.

5. Review and discuss adoption of updated 2023 Bylaws – Daniel Soto, Principal Management Analyst Recommended Action: Review, discuss, and adopt bylaws.

6. Discuss and determine future meeting dates – Chair
Recommended Action: Discuss and determine future meeting dates. ***END OF BUSINESS CALENDAR ***
SUBCOMMITTEE MEMBERS COMMENTS
ADJOURNMENT – The next regular meeting will be held at a date and time determined by the Legislative Affairs Subcommittee.

CALL TO ORDER

ATTENDANCE
Valerie Amezcua, Subcommittee Member
Jessie Lopez, Subcommittee Member
David Penaloza, Subcommittee Member
Staff:

Members of the public may only provide comments on items on the Special Meeting Agenda.

To provide Public Comments: Submit via email to gflores@santaana.org NO LATER THAN one hour before the scheduled meeting.

Participate during the meeting by selecting Zoom (Camera icon) next to the Public Comment title found at www.santaana.primegov.com/public/portal.

Join Zoom Meeting
https://zoom.us/j/88987245197
OR
Call (669) 9006833 and enter Meeting ID: 889 8724 5197#.

If you are accessing this agenda from a tablet or mobile device, please click on the three dots ( Capture.PNG ) below "Documents" to click on the HTML agenda.

WATCH A LIVE STREAM OR BROADCAST ONLY:

Portal: https://santaana.primegov.com/public/portal OR YouTube:www.youtube.com/cityofsantaanavideos/live
CONSENT CALENDAR ITEMS

1. Excused Absences
Recommended Action: Excuse the absent members.
***END OF CONSENT CALENDAR ***
BUSINESS CALENDAR

2. Election of Chair and Vice Chair for the Legislative City Council Subcommittee.

Recommended Action: Select Chair and Vice Chair.

3. Receive Federal Legislative Updates
a. Holland & Knight – Leslie Pollner, Senior Policy Advisor Recommended Action: Receive report.

4. Receive State Legislative Updates
a. Townsend Public Affairs – Cori Takkinen, Vice President Recommended Action: Receive report.

5. Review and discuss adoption of updated 2023 Bylaws – Daniel Soto, Principal Management Analyst Recommended Action: Review, discuss, and adopt bylaws.

CALL TO ORDER

ATTENDANCE
Valerie Amezcua, Subcommittee Member
Jessie Lopez, Subcommittee Member
David Penaloza, Subcommittee Member
Staff:

Members of the public may only provide comments on items on the Special Meeting Agenda.

To provide Public Comments: Submit via email to gflores@santaana.org NO LATER THAN one hour before the scheduled meeting.

Participate during the meeting by selecting Zoom (Camera icon) next to the Public Comment title found at www.santaana.primegov.com/public/portal.

Join Zoom Meeting
https://zoom.us/j/88987245197
OR
Call (669) 9006833 and enter Meeting ID: 889 8724 5197#.

If you are accessing this agenda from a tablet or mobile device, please click on the three dots ( Capture.PNG ) below "Documents" to click on the HTML agenda.

WATCH A LIVE STREAM OR BROADCAST ONLY:

Portal: https://santaana.primegov.com/public/portal OR YouTube:www.youtube.com/cityofsantaanavideos/live
CONSENT CALENDAR ITEMS

1. Excused Absences
Recommended Action: Excuse the absent members.
***END OF CONSENT CALENDAR ***
BUSINESS CALENDAR

2. Election of Chair and Vice Chair for the Legislative City Council Subcommittee.

Recommended Action: Select Chair and Vice Chair.

3. Receive Federal Legislative Updates
a. Holland & Knight – Leslie Pollner, Senior Policy Advisor Recommended Action: Receive report.

4. Receive State Legislative Updates
a. Townsend Public Affairs – Cori Takkinen, Vice President Recommended Action: Receive report.

5. Review and discuss adoption of updated 2023 Bylaws – Daniel Soto, Principal Management Analyst Recommended Action: Review, discuss, and adopt bylaws.

Copyright © 2023 Holland & Knight LLP. All Rights Reserved City of Santa Ana Federal Update
Leslie Pollner, Lisa Barkovic, Dan Maldonado, Joe O’Brien September 2023
Agenda
• Introduction
• Government Funding Update
• Government Shutdown Implications
• Appropriations Update
• Urban and Community Forestry Award
• Federal Grants
2 Government Funding Update
• Lawmakers have until September 30 to pass a continuing resolution to prevent a federal government shutdown.
• House Republicans released their bill to keep the government running through October 31, fund border security, and temporarily cut domestic spending by 8% in a deal brokered by several members of the House Freedom Caucus and Main Street Republicans Caucus. • Some Republicans vowed to vote against the continuing resolution, preventing its passage.
• Due to the many conservative priorities included and absence of disaster relief & Ukraine funding in the House’s bill, it is a non-starter in the Senate, even if it passes the House.
• Speaker Kevin McCarthy lacks the consensus he needs to bring a clean continuing resolution to the House floor without being removed as Speaker due to the steep demands made by many conservative members. As a result, the odds of the federal government shutting down on October 1, when the new fiscal year begins, are high. 3 Government Shutdown Implications
• During a government shutdown, non-essential government services will cease as staff is subject to furlough during the lapse in appropriations. Government staff will be unable to meet with stakeholders and respond to emails/calls.
• Services essential to the security of the United States will continue such as federal law enforcement, aviation safety, and national security operations.
• HUD will make previously obligated CDBG, HOME, HOPWA, Homeless Assistance Grants funds and other grant funds
available for draw down by grantees.
• New store authorization for SNAP and WIC programs will cease and only existing SNAP and WIC will continue.
• Some officials tasked with the implementation of the Infrastructure Investment and Jobs Act will continue work due to mandatory funding provided by Congress. They will however be prevented from working on anything general fund related.
4 Appropriations Update
• Included in the FY 2024 House CJS bill is a community project funding request advanced by Rep. Correa for $963,000 for the City’s Alternative Response Program.
• The House has yet to pass the CJS bill and has been unable to advance their appropriations legislation due to some Republicans’ objections over spending levels and policy provisions.
• Congress must pass a budget for the City to receive the earmark funding in the CJS bill.
5 Urban and Community Forestry Award
• On September 14, the U.S. Forest Service announced the 2023 Urban and Community Forestry Program awards.
• The Inflation Reduction Act provided $1 billion in competitive grants to plant and maintain trees and combat extreme heat and climate change.
• The City of Santa Ana received $1.023 million for its Urban Forest Reforestation Project.
• Funding will enable the City to plant new street trees while simultaneously removing and replacing dead and hazardous street trees.
6 IIJA Grants and Upcoming Funding:
7 Program Funding level over 5
years
Status
Reconnecting Communities
Program/Neighborhood Access (IIJA/IRA)
• To remove, retrofit, or mitigate highways or other
transportation facilities that create barriers to
community connectivity.
• IRA provided $3.2 billion for the Neighborhood
Access Program.
$3.7 billion Closes
9/28/2023
Electric Vehicle (EV) Charging and Refueling
Grant Program
• Competitive and formula program to deploy
publicly accessible alternative fuel vehicle
charging infrastructure.
$2.5 billion Closed
Safe Streets and Roads for All
• Supports local Vision Zero initiatives.
$5 billion Closed
IIJA Grants and Upcoming Funding:
8 Program Funding level over 5
years
Status
SMART Grant Program
• Demonstration projects for advanced smart city
or community technologies to improve.
transportation efficiency and safety.
$500 million Closes
10/10/2023
RAISE Grant Program
• Supports the development of road, rail, transit,
and port projects that promise to achieve national
objectives.
$7.5 billion FY23
NOFO –
October/
November
Questions?
9

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M E M O R A N D U M

To: City of Santa Ana
City Council Legislative Subcommittee

From: Townsend Public Affairs, Inc.

Casey Elliott, Vice President

Date: September 26, 2023

Subject: State Update/End of Session Overview

2023 STATE LEGISLATIVE WRAP UP

September 14th marked the final night of the 2023 Legislative Session, marking the end of the first year of the two -year 2023-24 legislative session. The 2023 legislative year was shaped by a number of dynamics, including a record number of freshman legislators, leadership changes in both houses, and the highest number of bill introductions in over a decade. In the final week of the Session alone, the Legislature had more than 700 bills that were still active and pending consideration. This set the stage for a frenetic pace of activity, with the Legislature determined to act on a number of consequential policy issues, including behavioral health reform, public safety reforms, co nservatorship expansion, and proposed constitutional amendments that would enhance and protect local revenue sources.

The Legislature decided the fate of a number of bills important to local governments in its final days of session. Of the 3,038 bills in troduced this year, the Legislature passed close to 1,100 measures. As of September 18 th, the Governor has signed 476, vetoed 3, and still has 847 bills to consider before the October 14th deadline to act on measures. During Governor Newsom’s first four years in office, he vetoed between 7.9% and 16.5% of the bills sent to his desk each year for action. Governor Newsom’s vetoes typically trend with concerns about a lack of state resources to effectively support the implementation of measures. It is anticipa ted that his vetoing of measures from the 2023 Legislative Session will follow a similar pattern.

The end of the 2023 Legislative Session also marked the beginning of Interim Recess. The Legislature will resume the second half of the 2023 -24 Legislative Session on January 3, 2024.

In the coming months, lawmakers are expected to return to their districts to meet with constituents and local stakeholders, hold staff retreats to determine policy priorities for the next year, and participate in informational hearings in preparation for major policy reforms anticipated next year.

Looking forward, there are over 400 measures that did not meet specified deadlines for passage in 2023 and were held as “2 -Year Bills.” These measures will be eligible for considerat ion in January 2024 and may be re -integrated into the legislative process along with other measures introduced at the beginning of the new session.

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Below is an overview of priority measures and events acted upon during the 2023 Legislative Session.

Revenue and Taxation

Late into the final night of session, ACA 1 (Aguiar-Curry) and ACA 13 (Ward) were approved by both the Assembly and the Senate, each measure constituting a major reform to protect and enhance local revenue -generating tool s. S these measures propose amendments to the California Constitution, they will face consideration from the voters at the November 2024 General Election.

ACA 1 (Aguiar-Curry) allows voters to decide whether a 55% threshold for approving special taxes or incurring bonded indebtedness to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing projects is an appropriate standard.

This year marked the fifth attempt by Assembly Member Aguiar -Curry t o move the measure forward. The legislation took numerous amendments, including language that l imits the number of propositions authorized by the measure a local government can place on the ballot until all funds from a proposition have been committed, along with other transparency requirements.

ACA 13 (Ward) requires an initiative constitutional amendment to comply with any increased voter approval threshold that it seeks to impose on future ballot measures. ACA 13 also guarantees in the state constitution the ability of local governments to submit advisory questions to voters. The last round of amendments specify that the measure’s voter threshold requirement would apply to statewide initiative measures that appear on the ballot on or after January 1, 2024 and clarify that the measure is not intended to impact the provisions of Proposition 13.

ACA 13 was introduced in response to the Taxpayer Protection and Government Accountability Act, which seeks to raise vote threshold requirements for the passage of state and local tax measures and imposes a stringent burden of proof standard that local governing bodies must meet when modifying or increasing all taxes and fees by justifying their use, need, and duration.

The measure is eligible for placeme nt on the November 2024 ballot and is sponsored by the California Business Round Table and its affiliates. If enacted by voters, it would make it extremely difficult for local governments to maintain existing tax revenues and modify them in the future.

After the bill was approved by the Assembly on the final night of the session, Assembly Member Ward and Assembly Leadership announced that they would be holding ACA 13 at the Assembly Desk until November 1st (2023) and would then process the measure. While this may seem like a minor processing item, the practical effect is that ACA 13 will not be processed in time to be placed on the March 2024 primary election ballot, but will instead be placed on the Novem ber 2024 general election ballot.

ACA 13 contains language that states its provisions apply to initiatives that appear on the same ballot, so if ACA 13 passes on the November 2024 ballot, its provisions would apply to initiatives on that same ballot, such as the Taxpayer Protection and Government Accountability Act . It is possible that the Legislature will continue to negotiate with the California Business Round Table to reach a compromise in advance of next year’s November General Election. If that compromise requires legislative action, the Legislature will have until June 2024 to approve a new measure.

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Housing and Land Use

This year’s Session ended with the passage of several notable land use reform measures. Two pieces of notable legislation were introduced by Senator Wiener, including SB 4 which requires a housing development project to be a “use by right” on land owned by an independent institution of higher education or a religious institution, and SB 423, which extends the sunset on SB 35 (Wiener, Chapter 366, Statutes of 2017) to January 1, 2036, mak es various changes to labor requirements, and removes the categorical exemption of coastal parcels for streamlining, subject to certain conditions.

Senate Bill 423 extends a decades-long state housing law set which is to expire in 2026. Current state housing laws grant developers the authority to bypass a substantial portion of bureaucratic procedures, frequently attributed to hindering the progression of multifamily construction projects.

This exemption, however, applies exclusively to municipalities tha t have not yet met the state’s housing targets. Initially, SB 423 faced controversy and backlash from labor unions. While SB 423 requires housing developers to provide wages at union standards and limited healthcare benefits, concerns have been raised by n umerous local and state labor organizations regarding doubts over the sufficiency of these provisions in adequately protecting the welfare of construction workers. To address those concerns, amendments were added to SB 423 that strengthened labor regulations on certain projects. As of September 18th, SB 4 and SB 423 are pending final action from the Governor.

In addition to streamlining measures, this year the Legislature made progress on reforming the Surplus Land Act (SLA) process, through two measures – AB 480 (Ting) and SB 747 (Caballero).

Under existing law since the passage of AB 1486 (Ting, Statutes of 2019), local agencies are prohibited from counting the sale of land for economic development purposes as being "for the agency's use." This means that local agencies must open their properties up to affordable housing developers first, even if they have a different purpose in mind for the property. Prior to the enactment of AB 1486, state law did not require local agencies to always designate land as surplus prior to disposing of it, which meant they could enter into negotiations to dispose of land to further local priorities such as economic development without going through the SLA process.

AB 480 expands the California Department of Housing and Community Development (HCD) authority in only one way: by subjecting disposals pursuant to the mixed-use exemption for larger sites to penalties under the SLA, despite the broader exclusion from the SLA that exempt surplus land enjoys. However, only those agencies that avail themselves of the mixed -use exemption would be liable to face those penalties. Further, AB 480 adds a definition of disposal that specifies what types of transactions are subject to the Surplus Land Act. It then goes on to specify two types of transactions that are definitively not disposals in order to provide further certainty to local governments that HCD will not subject those transactions to the SLA. For example, other transactions that would not fall under the SLA could include property transactions that are not sales or leases. Similarly, AB 480 includes additional activities that should not be considered “participating in negotiations,” as a matter of clarification.

SB 747, on the other hand, makes a number of changes to the Surplus Land Act, including, exempting parcels under hal f an acre from the SLA, thereby opening them up to economic development; streamlining the leasing process by clarifying that the SLA does not apply to leases of less than 15 years; and ensuring that property purchased with funds that are restricted in their use, such as federal funds or mitigation fees, does not have to go through the SLA. Both SB 747

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and AB 480 are subject to “contingent enactment” meaning one bill only goes into effect if the other is signed into law because they amend the same code secti on. As of September 18 th, the Governor has not yet acted upon either measure.

Behavioral Health Reform

This year, Governor Newsom and Legislative Leaders made overhauling the State’s existing behavioral healthcare infrastructure a top priority. The Behavioral Health Reform Package, comprised of the Mental Health Services Act (MHSA) policy reforms contained within SB 326 (Eggman) and the $6.38 billion bond proposal to support residential care facility construction contained within AB 531 (Irwin), passed the Legislature in the final days of Session and will appear on the March 2024 Primary Election ballot.

SB 326 includes amendments to the MHSA originally passed by the voters nearly 20 years ago.

The changes proposed in SB 326 would have a considerable and long-term impact on how funds are allocated to support the provision of behavioral health services in communities, by prioritizing spending on housing solutions and expanding the pool of individuals eligible for services to include substance use disorders as qualifying criteria.

AB 531, if approved by the voters at the March 5, 2024, statewide primary election, will authorize the issuance of $6.38 billion in general obligation bonds to finance loans or grants for the acquisition of capital assets for the conversion, rehabilitation, or new construction of permanent supportive housing and behavioral health infrastructure. The bill specifies $1.5 billion of the total to be awarded specifically to cities, counties, and tribes for programs across the continuum of behavioral health treatment resources. The measure also includes language to streamline the development of behavioral health infrastructure via a by-right process.

In addition to the behavioral health reform package headed for the ballot, the Legislature considered reforms introduced by Senator Eggman to expand the definition of “gravely disabled” under the state’ s conservatorship process and improve data collection requirements to better track the use and need of the state’s behavioral health supportive resources.

Ultimately, SB 43 (Eggman), which expands the definition of “gravely disabled,” for purposes of involuntarily detaining to include a severe substance use disorder or mental health disorder and is unable to additionally provide for personal safety or necess ary medical care , passed the Legislature after undergoing numerous iterations of amendments and is pending action from the Governor.

SB 363 (Eggman), which would have required various agencies to develop a real-time, internet- based database to collect, aggregate, and display information about beds in specified facilities to identify the availability of inpatient and residential mental health needs and usage, was ultimately held in the Assembly Appropriations Committee.

Fentanyl Overdose Prevention

With a growing number of fentanyl -related fatalities in California, opioid overdose prevention emerged as a prominent focal point within the legislative agenda during this year’s Session. Given the prevailing statistical trends and the pervasive nature of this crisis across both the state and the nation, Legislators introduced a plethora of legislative initiatives aimed at mitigating the impacts of the epidemic.

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According to the California Department of Public Health, between 2019 and 2021, California’s opioid-related deaths spiked by 121%. A majority of these deaths were linked to fentanyl, an extremely potent synthetic opioid. Legislation that passed both hous e floors moved to establish special task forces to fight opioid overdoses, provide fentanyl test strips in California Community Colleges and CSUs, and weigh existing sentencing enhancements for penalties associated with trafficking and furnishing substances. Measures that were unsuccessful this year included provisions for incarceration enhancement that ultimately sought to add to the state’s penal code.

Measures that made it to the Governor’s Desk include AB 33 (Bains), which e stablishes the Fentanyl Misuse and Overdose Prevention Task Force to undertake specified duties relating to fentanyl abuse, AB 461 (Ramos), which r equires the governing board of each community college district (CCD) and the Trustees of the California State University (CSU) to provide information about the use and location of fentanyl test strips as part of established campus orientations, and AB 701 (Villapudua), which applies the existing weigh t enhancements that increase the penalty and fine for trafficking substances containing heroin and cocaine to fentanyl.

Measures that were unsuccessful this year include fentanyl and opioid legislation with sentencing enhancements provisions. They were specifically held in the Assembly Public Safety Committee, as a majority of Committee members voiced concerns about adding to the state’s penal code and the unintended impacts on minority communities and the state’s legal system. Legislation that was ultimately held included AB 367 (Maienschein), which adds sentencing enhancements for those who seriously injure or kill through fentanyl poisoning , AB 955 (Petrie-Norris) which increases penalties for dealers who sell fentanyl over social media , and AB 1058 (Patterson) which increases penalties for those possessing a large amount of fentanyl.

In May 2023, the Assembly Health and Public Safety Committees met with the newly -formed Assembly Select Committee on Fentanyl, Opioid Addiction, and Prevention for an informational hearing that lasted over five hours, hearing testimony from experts, officials, and families affected by fentanyl. Lawmakers committed to studying proposed measures to add ress fentanyl public safety reforms over the interim recess and hold additional fentanyl -specific committee hearings to continue legislative conversations.

LOOKING FORWARD

As previously noted, 2023 marked the first year of the two -year session cycle. A total of 467 measures are deemed as “2-year bills,” meaning they are eligible for reconsideration in January 2024. Any bill that was introduced in 2023, and is still in its House of Origin, will need to move through the committee process and be voted out of the first house by the end of January 2024 in order to remain eligible for further consideration. As such, January 2024 will be a busy month for the prioritization of previously introduced measures , the introduction of new measures, and the consideration of policy proposals by a new host of leadership. Below is an overview of policy issue areas to be on the lookout for in 2024.

Budget Outlook

Earlier this year, the State’s budget faced a n over $30 billion projected deficit and reductions in multi-year spending programs. The overall tenor of the enacted budget focused on maintaining reserves, reducing multi-year spending, and building capacity to sustain core programs. However, updated cash flow estimates paint a more balanced picture. Even with the IRS-imposed delay of

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high-income taxpayers’ tax payments for 2022 and early 2023 to October, recent estimates show that cash receipts represent an unprecedented state treasury liquidity. For instance, estimates for September and October of 2023 estimate the need for only about $10 billion of temporary cash borrowing from other state funds to the General Fund in September 2023, which would leave more than $80 billion of available balances in non -General Fund accounts (including rainy day fund reserves) at that time.

For comparison, during the state’s deep financial crisis in 2009, fiscal conditions left the state with a zero General Fund balance and over $1.5 billion in registered warran ts. Since this time, the state has seen a stunning 60-fold increase in liquidity. This monumental change in California state budgeting provides extraordinary resilience to meet future budget challenges. Many of the most extreme budget actions of 2008 -2010 were necessitated by the state’s weak cash position, so recent unprecedented liquidity and deserves offers a key budget buffer given the deficit forecasts for future years.

Despite these positive predictions, a lot can transpire in the course of the year before the next budget cycle. It is anticipated that budget resiliency, shoring up reserve accounts, and prudent spending will continue as practice under the Newsom Administration and Department of Finance.

In November, the Legislative Analyst’s Office releases their Fiscal Outlook for the upcoming budget year, which will provide the first preview as to the state’s financial position going into the January budget.

Statewide Ballot Initiatives

As of September 2023, eight measures have qualified for the statewide ballot: two legislatively approved measures for the March Primary election, and five initiatives, as well as one referendum, for the November general election.

For the March ballot, two measures passed by the Legislature are officially qualified. This includes a constitutional amendment to repeal a 2008 ballot measure , passed by a 52% vote, that prohibited same-sex marriages but was later voided by the U.S. Supreme Court. The other would repeal a constitutional mandate known as Article 34, passed by voters in 1950, that requires voter approval for low-income housing projects.

In addition to these qualified measures, the Governor -sponsored behavioral health care reform package, including a $6.38 billion bond for the development of behavioral health infrastructure and comprehensive reforms to the Mental Health Services Act (MHSA) spending allocations, are likely to appear on the March Primary ballot, assuming the Governor signs the bills pending before him.

For the November ballot, one referendum backed by the petroleum industry would overturn a 2022 law requiring a 3,2000-foot buffer between new oil wells and “sensitive receptors” including homes, schools, nursing homes, and hospitals. Another referendum that would have overturned a 2022 union-sponsored bill to regulate the wages and working conditions in fast food chains is likely to be withdrawn by proponents following a legislative deal made in the final week of the 2023 Legislative Session.

Priority local government constitutional amendments like ACA 1, which would lower the voter approval threshold for local general obligation bonds and special taxes from two -thirds to 55%, and ACA 13 , which requires an initiative constitutional amendment to comply with any

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increased voter approval threshold that it seeks to impose on future ballot measures, are both currently scheduled to appear on the November ballot.

Other notable initiatives qualified for the November ballot include:

 The California Business Roundtable -sponsored Taxpayer Protection and Government Accountability Act proposes a new constitutional amendment that would require voter approval of any new state and local taxes or tax -like fees , along with stringent transparency requirements, the retroactive repeal of taxes and fees passed before its enactment, and new evidentiary standards for proving the need, usage, and duration of new taxes and fees. This measure is opposed by a large coalition of local governments, labor unions, and educational institutions. Given its potential impact on the state’s ability to ra ise revenues, it is likely that the Legislature will negotiate with proponents on a compromise in 2024.

 The AIDS Healthcare Foundation and its affiliates have proposed a constitutional amendment that would let cities put new restrictions on how much landlords can increase rent. A nearly three-decade-old state law blocks local governments from setting rent caps on homes built after 1995, or to any single -family homes. The law also permits landlords to increase rent as much as they like once a tenant moves out. The proposed proposition would repeal that law, allowing local governments “to maintain, enact or expand residential rent control” however they see fit.

In addition to qualified measures, there are a number of initiatives pending certification from the Secretary of State that would address issues related to the state’s open records law and lobbying activity transparency, providing that local land use laws supersede state laws , and reforming Proposition 47 to lower dollar thresholds for what constitutes a felony in theft cases.

Initiative proponents must have their measures qualified no later than 131 days before the November election, meaning by June 2024, the state will have a better idea of what will appear on the ballot. This timeline does make it possible for the Legislature to engage in negotiations with initiatives proponents to address issues that could otherwise appear on the ballot.

Additionally, it is likely that lawmakers will introduce new measures in January that they would like to have placed on the November General Election ballot.

Statewide Bonds

2023 was a major year for the introduction of statewide bond proposals - a typical pra ctice to maintain spending equilibrium when there is an anticipated reduction in cash on hand. Bonds proposals introduced in 2023 included measures to address issues related to housing production, behavioral health services, climate resiliency, and the mod ernization of school facilities, among others. The proposed statewide bonds feature roughly $100 billion in total funding. Of those proposed, only AB 531 – the behavioral health infrastructure bond – passed the legislative process and onto the ballot for voter consideration in March once the Governor signs it into law.

The state does not impose limitations on how much it can borrow, however, in deciding whi ch measures to prioritize, the Legislature and Administration will weigh a number of factors. Those include voter sentiment and the state’s economic outlook and its debt service ratio — the percentage of the state’s general fund that is spent paying down its debt. The state’s annual debt service from the general fund sits at $8.1 billion and is expected to grow to $8.9 billion in 2026 -

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27, according to estimates from the California Department of Finance. There are also practical constraints: the state generally avoids taking on excessive debt as a matter of fiscal caution and Wall Street financing’s capacity, with Governor Newsom estimating the prudent limit at less than $30 billion.

In addition to the behavioral health infrastructure bond, th e Governor indicated throughout the 2023 budget process his support for a climate resiliency bond – even going so far as to predicate portions of the state’s total climate budget on the passage of a future bond. The passage of these bonds would provide for ongoing funding programs that align with numerous state and local goals including clean energy development, parks and recreation, affordable housing, and transportation, to name a few.

Below are high-profile bond proposals that may be acted upon in 2024. Legislators may also opt to utilize new bill vehicles for additional bond priorities.

 AB 1567 (Garcia) and SB 867 (Allen) both propose over $15 billion in bonds for a comprehensive climate resiliency package. Funds would be used for drought, flood, and fire mitigation, coastal resilience, park and outdoor a ccess programs, and clean energy development, among other things. The two near -identical measures are parked in the Senate and the Assembly as a means to facilitate negotiations between both houses and the Administration on final funding priorities.

 AB 1657 (Wicks) Enacts the Affordable Housing Bond Act of 2024, which places a $10 billion General Obligation bond before voters in the March 2024 primary election to finance specified affordable housing and homeownership programs. Programs include the Multifamily Housing Program to finance the construction of permanent and transitional housing for lower-income households, and the CalHOME program, which provides grants to local public agencies and non -profit developers to assist individuals and households through deferred-payment loans.

 AB 247 (Muratsuchi) and SB 28 (Glazer) propose $15 billion and $14 billion, respectively, in general obligation bonds to finance the construction and modernization of education facilities. The proceeds of these bonds would fund projects for Transitional Kindergarten through community colleges, as well as provide facitlities funding to the University of California and the California State University systems. Each bill also proposes to make modifications to the manner in which K-12 facility needs are evaluated and funded utilizing the bond proceeds.

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1 WWW.TOWNSENDPA.COM
SACRAMENTO • WASHINGTON, DC
SOUTHERN CALIFORNIA • NORTHERN CALIFORNIA
WWW.TOWNSENDPA.COM
SACRAMENTO • WASHINGTON DC
NORTHERN CALIFORNIA • CENTRAL CALIFORNIA • SOUTHERN CALIFORNIA Legislative
Committee Update
September 26, 2023

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2 Slide
2 Summary
2023 Legislative Session adjourned
on September 14th
• Governor Newsom has until October
14th to act on measures.
• 847 bills awaiting action
Legislative Committee Update | September 27, 2023
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3 Slide
3 Areas with Significant Legislative Focus
Legislative Committee Update | September 27, 2023
Revenue and Taxation
Housing and Land Use
Behavioral Health Reform
Fentanyl Overdose Prevention
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4 Slide
4 Revenue and Taxation
• Increased voter threshold for
initiatives
• Introduced in response to
Taxpayer Protection Act
• Likely to appear on November
2024 General Election ballot
ACA 13 (Ward)
Legislative Committee Update | September 27, 2023
• Lowers voter threshold, to 55%,
for bond/special taxes dedicated
to affordable housing and public
infrastructure
• Will appear on November 2024
General Election ballot
• If approved, would apply to
bonds/special taxes starting in
November 2024
ACA 1 (Aguiar-Curry)
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5 Slide
5 Housing and Land Use
Legislative Committee Update | September 27, 2023
• Extends the sunset on SB 35 to
January 1, 2036
• Maintains provisions exempting
jurisdictions meeting their RHNA
numbers
SB 423 (Wiener)
• Permits housing developments
“by-right” on properties owned
by religious institutions
SB 4 (Wiener)
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6 Slide
6 Behavioral Health Reform
Legislative Committee Update | September 27, 2023
• Make reforms to the Mental Health Services Act
• Place a $6.38 billion bond on the March 2024 ballot to support residential care facility construction
• Contains $1.5 billion specifically for cities and counties SB 326 (Eggman) AB 531 (Irwin)
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7 Slide
7 Fentanyl Overdose Prevention
Legislative Committee Update | September 27, 2023
• Establishes Fentanyl Misuse
and Overdose Prevention Task
Force
AB 33 (Baines)
• Increases penalties for
individuals possessing large
amounts of fentanyl
AB 701 (Villapadua)
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8 Slide
8 Fentanyl Overdose Prevention
Legislative Committee Update | September 27, 2023
• Establishes Fentanyl Misuse
and Overdose Prevention Task
Force
AB 33 (Baines)
• Increases penalties for
individuals possessing large
amounts of fentanyl
AB 701 (Villapadua)
• New Committee on Fentanyl, Opioid Addiction, and Prevention • Will work to develop comprehensive legislation for consideration in 2024 New Assembly Select Committee
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9 Slide
9 Looking Forward
Legislative Committee Update | September 27, 2023
STATE
BUDGET
• Tax deadline
extended to October
• Slight budget deficit
predicted
• Governor’s budget
released in January

STATEWIDE BALLOT

INITIATIVES
• ACA 13/Taxpayer
Protection Act
• ACA 1
• Rent Cap constitutional
amendments

STATEWIDE
BONDS
Under Consideration for
November 2024
• Climate Bond
• Housing Bond
• Education Bond
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10 Slide
10 Ongoing Items
Meeting and facilities tour with
Governor’s Office Senior Advisor on
Homelessness
• Scheduled for September 27th
Ongoing work between City staff and
HCD related to AB 2011/SB 6 parcel
exemption
• HCD working with City staff to
analyze replacement parcels that
were identified by the City
Legislative Committee Update | September 27, 2023

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11 Slide
11 Legislative Committee Update | September 27, 2023
Contact Information
Christopher Townsend
President
[email protected]
Casey Elliott
Vice President
[email protected]
Cori Takkinen
Vice President
[email protected]

LegislativeCityCouncil SubcommitteeBylaws
ARTICLEI - NAMETheSubcommitteeshall beknownastheLegislativeCityCouncil Subcommittee.

ARTICLEII - PURPOSEThepurposeof theSubcommitteeshall betoconsider legislativepolicymattersrelatedtolocalgovernment that mayaffect theCityof SantaAna(“City”), brought or referredbyaSubcommitteemember, theCityManager or designee, theCity’slobbyists, or theCity'slegislativerepresentatives.

ARTICLEIII - POWERSANDDUTIESTheSubcommitteeshall receiveinput fromCitystaff, constituents, lobbyists, andlegislativerepresentativesandadvocatesregardinglegislativemattersbeforetheStateor FederalGovernment that mayaffect theCity. TheSubcommitteeshall makerecommendationstotheCityCouncil regardinglegislativepriorities.

ARTICLEIV- COMPOSITIONOFTHESUBCOMMITTEE
SECTIONA- MembersTheSubcommitteeshall becomposedof twoor threesittingmembersof theCityCouncil.

SECTIONB- OfficersThereshall beaChair andaVice-Chair.

TheChair shall presideat all meetingsof theSubcommittee. TheVice-Chair shall presideallmeetingsof theSubcommitteewhentheChair isabsent.

SECTIONC- TermTheofficersshall beelectedbyamajorityof theSubcommitteemembersduringthefirstSubcommitteemeetingof eachcalendar year andshall takeofficeimmediately. Nominationsshall bemadefromthefloor.

SECTIOND-SecretaryAsecretaryshall beappointedfromCitystaff. Thesecretaryshall keepatrueandaccuraterecordof all meetingsof theSubcommittee, issuenoticeof all regular andspecial meetings, andperformsuchdutiesasaregenerallyassociatedwiththesecretaryfunctions.

ARTICLEV- MEETINGS
SECTIONA- RegularMeetingTheregular meetingshall beheldat least quarterly. Thetimeanddateof theregular meetingistobeset byCitystaff.

SECTIONB-SpecialMeetingSpecial meetingsmaybecalledat thediscretionof theChair, or at therequest of amember, forthetransactionof businessasstatedinthecall for themeeting.

SECTIONC- QuorumAquorumfor thetransactionof businessat anymeetingshall consist of amajorityof thesittingSubcommitteemembers.

SECTIOND- AttendanceExcusedabsencesshall bedefinedasanyabsencereceivedbytheChair or Secretarytwohoursbeforecommencement of themeeting. Inasmuchasit isthedesireof theSubcommitteetohaveafull commitment fromeachmember, theSubcommitteeshall review, onacase-by-casebasis, instancesof twoconsecutiveabsences, excusedor unexcused, duringacalendar year.

ARTICLEVI - PARLIAMENTARYAUTHORITYThemost recent editionof Rosenberg’sRulesof Order shall betheauthorityonall questionsofparliamentarylaw, unlessinconflict withthesebylaws, theSantaAnaMunicipal Code, or thelawsof theStateof California.

ARTICLEV- ADOPTIONANDAMENDMENTOFBYLAWSThesebylawsshall beapprovedbytheSubcommittee. ThesebylawsmaybereviewedbytheSubcommitteefromtimetotime.

Legislative City Council Standing SubcommitteeSeptember 26, 2023

Legislative City Council Standing Subcommittee
September 26, 2023