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Housing, Land Use and Transportation
For more information, contact DeAnn Baker at 916/327-7500, ext. 509, or dbaker@counties.org or Kiana Buss at 916/327-7500, ext. 566, or kbuss@counties.org.
Budget Update
On Wednesday, June 24, the Senate and Assembly released budget trailer bills to amend the enacted Fiscal Year (FY) 2009-10 State Budget Act. CSAC understands that there are 19 trailer bills in total; however, specific language is mostly unavailable. As mentioned in today’s lead article, the measures related to county transportation issues are SB 72/AB 190 (Transportation: Highway User Tax Account) and SB 74/AB 192 (Cash Management: Proposition 42).
SB 72 would take $986 million in gasoline excise tax revenues from cities and counties to the state general fund for bond debt service in FY 2009-10. The measure would also redirect $750 million from local agencies for the same purpose in FY 2010-11.
SB 74 would defer the first two quarterly payments of Prop 42 to cities and counties in FY 2009-10. Specifically, the Prop 42 payments scheduled for October 2009 and January 2010, totaling $288 million, would be deferred until May 31, 2010.
On Thursday, June 25, the Assembly and Senate convened to consider three of the budget trailer bills in an attempt to make partial budget cuts and deferrals to prevent the State from having to issue IOUs starting July 1. Included in this package of bills was SB 74. While the Assembly passed this measure with the required 2/3rds vote, the Senate failed to garner enough support to pass the bill as well. Regardless of whether both houses passed the measures, the Governor indicated he would veto them as he wants a complete budget solution and not partial cuts and deferrals in an attempt to buy more time.
Both houses reconvened this morning and plan to meet on a daily basis throughout the weekend until a deal has been reached.
Housing
AB 566 (Nava) – Support
As Amended on April 27, 2009
AB 566, by Assembly Member Pedro Nava, would close a loophole in existing condo-conversion law that allows for mobilehome park owners to subdivide and sell individual lots without being subject to local government approval. While in theory this exemption was meant to make it easier for Californian’s to purchase the land they live on, in practice it has had negative unintended consequences on mobilehome residents across the state.
Under current statute, when any one parcel of land in a mobilehome park is sold, it triggers a phase-out of any local rent control ordinance for the rest of the mobilehome park residents. During a time when affordable housing in California is difficult to find, this loophole must be closed to ensure that this type of affordable housing is available to seniors and working families statewide.
AB 566 failed passage in the Senate Transportation and Housing Committee on June 23; however, reconsideration was granted.
AB 1422 (Bass) – Support
As Amended on May 21, 2009
AB 1422, by Speaker Karen Bass, seeks to help low- and moderate-income persons and families affected by the subprime mortgage crisis. Specifically, it would allow, until January 1, 2013, redevelopment agencies to use funds from their Low and Moderate Income Housing Funds to (1) purchase, assume, or refinance, or assist lenders or nonprofit or for-profit developers in purchasing, assuming, or refinancing, subprime or nontraditional mortgages on homes owned by persons meeting a specified income level within its jurisdiction, or make loans to those homeowners and (2) purchase, or assist lenders or nonprofit or for-profit developers in purchasing homes within its jurisdiction that have been foreclosed and are vacant and sell those homes, without regard to income.
Hundreds of thousands of Californians have lost or will lose their home to foreclosure due to the continued housing crisis in the state and the nation. With the high number of foreclosures occurring, it is imperative that all levels of government work together to provide the tools necessary to assist Californians to stay in their homes as well as to help stabilize the market.
AB 1422 was passed out of the Senate Transportation and Housing Committee on June 23 by a vote of 7 to 4.
Public Works Administration
SB 802 (Leno) – Oppose
As Introduced on February 27, 2009
SB 802, by Senator Mark Leno, would require that contract retention proceeds not exceed 5% of the payment of all contracts entered into after January 2010, between a public entity and an original contractor, between an original contractor and a subcontractor, and between all subcontractors. This bill removes the authority of public entities to decide the appropriate amount of retention.
Local agencies must accept the lowest responsible bidder and the flexible retention rate helps to ensure timely and budget-conscious project completion. Local agencies commonly reduce retention to 5% at the half-way point of project completion, if adequate progress is being made and the contractor is acting in good faith. However, SB 802 would require local agencies to limit retention to 5% regardless of the progress or good faith of the contractor, thus protect potential bad actors either unknown or even known to the public agency, placing public interests and public funds at risk.
SB 802 is scheduled for a hearing before the Assembly Business and Professions Committee on June 30.
Transportation
AB 561 (Carter) – Support
As Introduced on February 25, 2009
AB 561, by Assembly Member Wilmer Amina Carter, would expand the definition of "highway worker" to include a contractor while under contract with the California Department of Transportation or a city or county employee who performs maintenance, repair, or construction of highways or local streets and road infrastructure for the purpose of enhanced penalties for assault or battery upon a "highway worker."
County employees – local street and road maintenance and rehabilitation crews – put their lives on the line in order to provide an important service which all Californians rely on in everyday life. Their job puts them in harm’s way of traffic and motorists who have been known to take anger out on road crew workers through physical violence. As such, the state should extend the current assault and battery criminal protections provided to state highway workers to local street and road workers as well.
AB 561 is scheduled for a hearing before the Senate Appropriations Committee on June 29.
SB 481 (Cox) – Support
As Amended on June 18, 2009
SB 481, by Senator Dave Cox, would correct a conflict between state and federal law over the authority of public airports to manage wildlife that can be hazardous to the traveling public and to the flight’s crew. This bill resolves this conflict by making it explicit that public airports have the same authority under state law to manage wildlife as they do under federal law according to the terms of a federally-issued permit (known as a federal fish and wildlife depredation permit).
SB 481 is scheduled for a hearing before the Assembly Appropriations Committee on July1.
SB 728 (Lowenthal) – Support
As Amended on April 27, 2009
SB 728, by Senator Alan Lowenthal, would allow cities, counties, and air districts to ensure compliance with the State’s parking cash-out law.
Current law requires an employer with 50 or more employees that provides a parking subsidy to employees to provide a cash allowance to an employee who does not use the parking space an amount equivalent to the amount the employer would otherwise pay to provide that employee a parking space. The program is administered by the California Air Resources Board (CARB) and existing law allows the imposition a civil penalty of up to $500 per employer. However, CARB has yet to enforce the program as it is somewhat impractical to do at the state level. Therefore, enforcement authority should also reside with local governments.
SB 728 is scheduled for a hearing before the Assembly Transportation Committee on June 29.
PRINTER-FRIENDLY VERSION
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