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Item 14 - Status of Pending Legislation AGENDA REPORT SUMMAR{)iSTHfBUTED (}~~ //,/r'ls - - v TO: Honorable ~ayor and Members of the City Council FROM: James L. Bowersox, City Man~ - INITIATED BY: Janis Acosta, Management AnalYs~ DATE: June 15, 1993 SUBJECT: Status of Pending Legislation ABSTRACT The League of California Cities has informed the City of the following measures pending in the State Legislature: AB 2003 (Bornstein) Housing Development Approval Process; SB 566 (Hayden) Benefit Assessments for Libraries; SB 780 (Rogers) Above-Ground Fuel Storage Systems; AB 996 (Tucker) Tobacco and Smoking Control; AB 899 (Costa) Department of Fish and Game Fees; AB 1313 (Willie Brown) Sale and Use Tax Exemptions; and SB 501 (Beverly) Public Employee Retirement "Golden Handshake." ENVIRONMENTAL REVIEW Environmental review is not required for this item under California Environmental Quality Act guidelines. FISCAL IMPACT - There is no fiscal impact. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE None. RECOMMENDATION It is recommended that the City Council oppose AB 2003 (Bornstein), support SB 566 (Hayden), oppose SB 780 (Rogers), oppose AB 996 (Tucker), support AB 899, oppose AB 1313 (Willie Brown), and support SB 501 (Beverly) and direct staff to notify the appropriate Assembly and Senate Committees about the City's position on each measure. ACTION --- II 1 of 8 JON 15 1993 ITEM 14 - AGENDA REPORr CITY OF POWAY This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the City Council unless members of the Council, staff or public request it to be removed fr~~ ~e ~onsent Calendar and discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indIcating the report number and give it to the City Clerk prior to the beginning of the City Council meeting. TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Manager INITIATED BY: Janis Acosta, Management AnalystjbL DATE: June 15, 1993 SUBJECT: Status of Pending Legislation BACKGROUND The League of California Cities has informed the City of the following measures pending in the State Legislature: AB 2003 (Bornstein) Housing Development Approval Process; SB 566 (Hayden) Benefit Assessments for Libraries; SB 780 (Rogers) Above-Ground Fuel Storage Systems; AB 996 (Tucker) Tobacco and Smoking Control; AB 899 (Costa) Department of Fish and Game Fees; AB 1313 (Willie Brown) Sale and Use Tax Exemptions; and SB 501 (Beverly) Public Employee Retirement "Golden Handshake." FINDINGS AB 2003 (Bornstein) - Land Use: HousinQ Develooment Aooroval Process The California Rural Legal Assistance has sponsored AB 2003 which would extend the prohibition against a city discriminating against residential developments and emergency shelters and would add specific criteria upon which discrimination may not be based. Cities and counties would be prohibited from discriminating against residential developments and emergency shelters based upon specific criteria pertaining to intended occupants and other local government agencies. Existing State law 1) prohibits a city from discriminating against residential developments and emergency shelters based upon the religion or ethnicity of the intended occupants, 2) specifies limitations on the time for commencing a legal action or proceeding to attack, review, set aside, void, or annul various planning and zoning actions and decisions of a local legislative body, and 3) requires local agencies to make specified findings before disapproving or conditionally approving certain housing development projects. ACTION: )) 2 of 8 JUN 15 1993 ITEM 14 - - Agenda Report Pending Legislation June 8, 1993 Page 2 The enactment of AB 2003 would require that actions to attack, review, set aside, void, or annul the housing element of a general plan must begin within 120 days of the decision of the legislative body or within 60 days of the date when the Department of Housing and Community Development (HCD) makes its report to the local agency. Further, local agencies would be required when disapproving or conditionally approving a development to submit a report to HCD relating to housing elements. According to the League of California Cities, AB 2003 would increase city costs and liability. The measure would require Government Code Section 65589.5(d)(6) to be amended, disrupting a balanced approach for ensuring that mixed income developments were approved while the local quality of development was protected. The League is opposed to AB 2003 since the measure links local government's ability to disapprove housing development projects, which are inconsistent with local plans and ordinances, to unrelated housing reports. AB 2003 has passed in the Assembly and is presently located on the Senate floor. It is recommended that the City Council oppose AB 2003 and direct staff to notify the local Senate delegation about the City's opposition to the measure. -- SB 566 (Hayden) - Benefit Assessments for Libraries Senator Hayden has introduced SB 566 which would enable counties and cities to levy benefit assessments to pay for library services, including the construction and furnishing of library facilities. In order to levy a library services assessment under SB 566, a local agency would be required to adopt an ordinance or resolution that describes the property to be assessed, sets the initial and maximum annual assessment for each property, and sets the duration of the assessment. The establishment of a benefit assessment for library services would require written notice, a public hearing, and an opportunity for the public to protest the assessment. If a proposed assessment affected more than 100,000 property owners, SB 566 would allow cities to forgo mailing individual notices if the city published a 1/8 page advertisement in a newspaper 45 days prior to the hearing. Following public testimony, city officials would be able to adjust proposed assessment amounts by measuring the protests with the following guidelines: a) If the protests are less than 10 percent of the value of the proposed assessments, officials can levy the assessments without an election; b) If the protests are 10 percent but less than 50 percent, officials can either stop the proceedings or call an election on the assessments; and c) If the protests are 50 percent or more, officials must abandon the assessments. An election for the assessment would require majority voter approval. -- Following the establishment of the benefit assessment, local officials would be allowed to levy assessments without giving individual mailed notice as long as the assessments do not exceed the maximum assessment set by the local JON 1 5 1993 ITEM 14 3 of 8 -- Agenda Report Pending Legislation June 8, 1993 Page 3 officials. If a city wanted to increase an assessment above the maximum amount, the city would be required to send written notices, However, local officials would be able to increase the annual assessments without mailing notices if the increase is for bond payments. Additionally, the measure would prohibit a county board of supervisor from considering revenue raised with library services assessments when property tax revenues are allocated from the Special District Augmentation Fund. The County of Los Angeles has sponsored SB 566 in an effort to provide libraries with a viable financing option since existing law does not provide libraries with the authority to replace lost revenues. Proponents of the measure, such as the California Library Association, contend that the enactment of SB 566 is critical to all libraries due to the Governor's proposed $2.6 billion shift in local government property tax revenue. Opponents such as the California Taxpayers Association are primarily concerned about the number of benefit assessments established since the passage of Proposition 13. SB 566 is presently awaiting a second reading in the Senate. It is recommended that the City Council support SB 566 and direct staff to notify the local Senate delegation about the City's support of the measure. SB 780 (Roaers) - Fire Safety: Above-Ground Fuel Storaae Systems Senator Rogers has introduced SB 780 which would require the State Fire Marshal to establish a statewide standard for above-ground fuel tanks which could not be modified by local officials. The intent of the measure is to establish within the State Fire Marshall's Office a uniform procedure for the installation and inspection of such systems, The author has introduced this measure contending that there is a lack of consistent enforced rules between local and state officials pertaining to above ground fuel storage systems. The State Fire Marshal has set minimum standards for above ground fuel tanks, however, cities are allowed to enhance the standards depending upon local condit ions. The provisions of SB 780 would enact the Above-Ground Fuel System Fire Safety Act which establishes specified procedures to facilitate fire safety inspection of above-ground fuel storage systems by the State Fire Marshal. An above-ground fuel storage system is defined as any fixed tank or vessel used for storing fuel of any kind above ground level. Beginning January I, 1994, it would be illegal to install such a system unless an inspection stamp by the State Fire Marshall is affixed to the system. The measure would also establish an application, review, inspection, and approval process and would provide an alternative method of approval of manufactured systems. JUN 1 5 1993 ITEM 14 4 of 8 - - - Agenda Report Pending Legislation June 8, 1993 Page 4 State fire officials and the State Fire Marshall, Ron Coleman, are adamantly opposed to SB 780 arguing that only local agencies can determine the appropriate level of safety required for citizens considering manning strengths and equipment availability. If SB 780 is enacted, local safety experts would be removed from the decision-making process which may increase the potential for disasters concerning fuel storage tanks. The League of California Cities is also strenuously opposed to SB 780 since the measure involves cities' public safety and cities' ability to protect citizens, SB 780 passed in the Senate Governmental Organization Committee 6 to 4 and is currently awaiting a hearing in the Senate Appropriations Committee. It is being recommended that the City Council oppose SB 780 and direct staff to notify the Senate Appropriations Committee about the City's opposition to the measure, AB 996 (Tucker) - Tobacco and SmokinQ Control Assemblymember Tucker has introduced AB 996 which proposes to repeal the California Indoor Clean Air Act of 1976 regulating smoking in public places and authorizing local governments to ban or regulate smoking rather than enacting a series of statewide smoking restrictions. Specifically, the measure would 1) restrict smoking in restaurants to optionally designated areas of 30 percent, 2) limit smoking in work places to specified enclosed areas, including lounges, private offices and conference rooms, if specified standards are met, 3) limit smoking in public places excluding hotel and motel rooms, bars and restaurants, and workplaces to specified portions of facilities, 4) increase fines for selling cigarettes to minors,S) restrict cigarette vending machines to areas where minors are not allowed, 6) prohibit billboard advertising within 500 feet of schools, and 7) require the Attorney General, via county sheriffs, to conduct unannounced inspections of tobacco retailers to monitor provisions of this bill. According to the League of California Cities, AB 996 is an attempt to defeat AB 13 which proposes to enact a 100 percent smoking ban in enclosed workplaces. The League has taken a neutral position on AB 13. However, the League contends that AB 996 would create a broad-based, statewide tobacco control and smoking standard that is full of loopholes. The measure would also prohibit cities from enacting new ordinances or strengthening existing ordinances related to tobacco and smoking control. The League is not opposed to a statewide tobacco control and smoking standard unless such requirements preempt local governments from enacting stricter ordinances, AB 996 has passed in the Assembly and is presently located on the Senate floor. It is being recommended that the City Council oppose AB 996 and direct - staff to notify the local Senate delegation about the City's opposition to the measure. ~15~ ~M 14 5 of 8 Agenda Report Pending Legislation June 8, 1993 Page 5 AB 899 (Costa) - Deoartment of Fish and Game Fees In 1990, AB 3158 enabled the Department of Fish and Game to establish and collect filing fees for the department's action pertaining to projects subject to the California Environmental Quality Act. The enactment of AB 3158 subjects projects to a $1,250 fee for the filing of a negative declaration, and a $850 filing fee for environmental impact reports. The provisions within AB 899 would repeal the $850 environmental filing fee on projects filed pursuant to CEQA, on programs that are certified as a functional equivalent of CEQA, or on specified water applications filed with the State Water Resources Control Board. Additionally, the $1,250 filing fee for negative declarations would be repealed. If AB 899 is enacted, the Department of Fish and Game is projected to loose $4,819,000 in revenue annua 11 y. Opponents to AB 899 primarily argue that the repealing of the environmental filing fees will cost the Department of Fish and Game millions of dollars when environmental programs are already underfunded. The author of AB 899 believes that AB 3158 fees should be repealed since the Department of Fish and Game has implemented the fees in a way that is not consistent with the legislative intent of the statute. The League of California Cities supports AB B99 since the fees created by AB 3158 have significantly increased the cost of development in California and has delayed projects. According to the League, the Department of Fish and Game admitted during a discussion with city representatives that the Department had no duty under Fish and Game Code Section 711.4 to revenue environmental impact documents in which the Department is charging fees. AB 899 passed in the Assembly and has been sent to the Senate, It is recommended that the City Council support AB 899 and direct staff to notify the local Senate delegation about the City's support of the measure. AB 1313 (Willie Brown) - Sales and Use Tax Exemotions Assembly Speaker Willie Brown has introduced AB 1313 which would create an exemption under the sales and use tax for any tangible personal property used primarily in manufacturing, in research and development activities, and in the repair or maintenance of qualified manufacturing or research and development equ i pment. AB 1313 would also exempt tangible personal property for the use in space flight and fuel used exclusively for space flight, The author's intent of the measure is to enhance California's competitive environment for manufacturers. Under existing law, manufacturers do not pay sales tax on the purchase of parts or components to be used to produce a final product for resale. The exemption is provided in order to avoid a double taxation on the component parts. However, existing law does not exempt equipment that the manufacturer uses to assemble component parts into a final JUN 1 5 1993 ITEM 14 6 of 8 - Agenda Report Pending Legislation June 8, 1993 Page 6 product. It is argued that the cost of equipment used to assemble parts becomes a portion of a final products's sales price. Consequently, the value of the equipment is being taxed twice, once on the purchase by the manufacturer and again as a portion of a final product's sale price. The State Board of Equalization has estimated that the enactment of AB 131 would reduce sales tax revenues by $1.2 billion and the local government's share of a $1.2 billion sales tax loss would be in excess of $300 million. The League of California Cities is opposed to this measure, estimating a total revenue loss for state and local governments between $2 and $6 billion. AB 1313 is waiting a second reading in the Assembly. It is being recommended that the City Council oppose AB 1313 and direct staff to notify the local Assembly delegation about the City's opposition to the measure. SB 501 (Beverlvl - Public Emolovees Retirement "Golden Handshake" Senator Beverly has introduced SB 501 which would authorize PERS local contracting agencies and '37 Act Counties to offer up to four years of service credit to eligible employees who retire during a 120 day period set by the - employer. Existing PERS and '37 Act laws allow PERS local contracting agencies and '37 Act Counties to offer two years additional service credit to employees as a "Golden Handshake" which is an incentive for early retirement. The enactment of SB 501 would enable PERS local contracting agencies and '37 Act Counties to adopt a resolution that would offer up to four years of service credit to eligible employees who retire during the 120 day period set by the employer. In 1992, Assemblymember Elder introduced AB 75, a similar measure which required the Governor's approval for an additional 2 years of "Golden Handshake" service credit. AB 75 was vetoed by the Governor out of concern that the bill would require the Governor to issue a statewide executive order to ensure the effectiveness of the measure. Senator Beverly has drafted SB 501 so that the measure does not contain the provisions the Governor believed would require the issuance of an executive order, The measure has received opposition from Cal-Tax and support from the League of California Cities. It is being recommended that the City Council support SB 501 and direct staff to notify the Senate Appropriations Committee about the City's support of the measure. ENVIRONMENTAL REVIEW Environmental review is not required for this item under California Environmental Quality Act guidelines. - FISCAL IMPACT There is no fiscal impact. JUN 1 5 1993 ITEM 14 7 of B Agenda Report Pending Legislation June 8, 1993 Page 7 ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE None. RECOMMENDATION It is recommended that the City Council take the following actions: 1. Oppose AB 2003 and direct staff to notify the local Senate delegation about the City's opposition to the measure. 2. Support SB 566 and dfrect staff to notify the local Senate delegation about the City's support of the measure. 3, Oppose SB 780 and direct staff to notify the Senate Appropriations Committee about the City's opposition to the measure. 4. Oppose AS 996 and direct staff to notify the local Senate delegation about the City's opposition to the measure. 5. Support AS 899 and direct staff to notify the local Senate delegation about the City's support of the measure. 6. Oppose AB 1313 and direct staff to notify the local Assembly delegation about the City's opposition to the measure, 7. Support SB 501 and direct staff to notify the Senate Appropriations Committee about the City's support of the measure. JUN 1 5 1993 ITEM 14 8 of 8