Item 6 - Approval of Position on Pending Legislation
AGENDA REPORT SUMMARY
TO:
FROM:
Honorable Mayor and Members of the City Council
James L. Bowersox, City Mana~
Paolo Romero, Management Assistant It:
June 7, 2005
INITIATED BY:
DATE:
SUBJECT:
Approval of Position on Pending Legislation
ABSTRACT
The City has been notified of AB 343-Utility User Taxes: Exemption, AS 697-Highway Users Tax
Account: Appropriation of Funds, AS 712-Land Use: Density, AS 1192-Public Works: Prevailing
Wages: Affordable Housing, AB 1234-Local Agencies: Compensation and Ethics, AS 1331-Workers'
Compensation: Apportionment: Presumptions, AS 1390-Housing, ACA 13-Local Government:
Assessments and Fees or Charges, SB 44-General Plans: Air Quality Element, SB 326-Land Use:
Housing Elements, SB 729-Water Quality, SB 820-Water, SB 995-Tax Exempt Bonds for Tribal
Nations, and SB 1059; which are pending before the State Legislature.
ENVIRONMENTAL REVIEW
This report is not subject to CEQA review.
FISCAL IMPACT
Staff is currently reviewing the impact of the proposed legislation.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council support AB 697, AB 1192, AS 1234, and ACA 13; oppose AS
343, AS 1331, SB 729, SS 995, and SB 1059 unless amended; and watch AS 712, AB 1390, SS 44,
S8 326, and SB 820; and inform members of the State Legislature, organizations, and committees of
the City's position.
ACTION
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7/1/03
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CITY OF POWA Y
AGENDA REPORT
TO:
FROM:
Honorable Mayor and Member~ <( ~ City Council
James L. Bowersox, City Mana~
Paolo Romero, Management Assistant 't:t
INITIATED BY:
DATE:
June 7, 2005
SUBJECT:
Approval of Position on Pending Legislation
BACKGROUND
The California 8tate Legislature is currently considering several bills, which may be of interest to the
City of Poway. This report contains a review of these bills and indicates a recommended position for
the City Council's consideration.
1. AB 343 - Utility User Taxes: Exemption
2. AB 697 - Highway Users Tax Account: Appropriation of Funds
3. AB 712 - Land Use: Density
4. AB 1192 - Public Works: Prevailing Wages: Affordable Housing
5. AB 1234 - Local Agencies: Compensation and Ethics
6. AB 1331 - Workers' Compensation: Apportionment: Presumptions
7. AB 1390 - Housing
8. ACA 13 - Local Government: Assessments and Fees or Charges
9. 8B 44 - General Plans: Air Quality Element
10.8B 326 - Land Use: Housing Elements
11.8B 729 - Water Quality
12. 8B 820 - Water
13.8B 995 - Tax Exempt Bonds for Tribal Nations
14.8B 1059 - Electric Transmission Corridors
FINDINGS
1. AB 343 (Huff) - Utilitv User Taxes: Exemption
CURRENT LAW
Existing law authorizes the board of supervisors of any county to levy a Utility User Tax on the
consumption of electricity, gas, water, sewer, telephone, telegraph, and cable television services in
the unincorporated areas of a county.
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PROPOSED LAW
AB 343 exempts from any utility user tax imposed by any city, county, or city and county the
consumption of natural gas by a local agency or a school district for transportation purposes if that
natural gas is dispensed by a gas compressor that is separately metered and is dedicated to serve
the local agency or school district.
COMMENTS
Utility Users Tax (UUT) is a locally administered revenue source. In addition to counties, both
chartered and general law cities are allowed to impose UUTs under existing law. This is a tax that is
imposed and administered at the local level and, since Proposition 218 has been in effect, voted on
by the citizens residing in the local jurisdiction. In addition, city officials are most familiar with the
needs and demands within their local community and are the best judges of how local taxes should
be applied. Local jurisdictions have shown flexibility in administering UUTs at the local level and
should be able to retain control over this revenue source.
It is recommended that the City Council join the League of California Cities and oppose AB 343.
2. AS 697 (Oropezal- Highwav Users Tax Account: Appropriation of Funds
CURRENT LAW
Article XIX of the California Constitution requires revenues from state excise taxes on motor vehicle
fuels for use in motor vehicles upon public streets and highways, over and above the cost of
collection and any refunds authorized by law, to be used for various street and highway purposes
and for certain mass transit guideway purposes. Existing law requires state excise fuel tax revenues
to be deposited in various accounts and to be allocated, in part, for various purposes, including the
cost of collection and authorized refunds. Existing law also requires the balance of these funds
remaining after authorized deductions to be transferred to and deposited monthly in the Highway
Users Tax Account in the Transportation Tax Fund. A formula apportionment is provided for
specified revenues in the Highway Users Tax Account to cities and counties for the transportation
purposes authorized by Article XIX of the California Constitution, and generally requires the
remaining revenues to be transferred to and deposited in the State Highway Account in the State
Transportation Fund. Existing law provides that the money in the Highway Users Tax Account is
appropriated for the above-described transportation purposes, but also generally provides that the
money in the State Highway Account may not be expended until appropriated by the Legislature.
PROPOSED LAW
AB 697, in any year in which the Budget Act has not been enacted by July 1, provides that all monies
in the Highway Users Tax Account in the Transportation Tax Fund from the prior fiscal year are
continuously appropriated and may be encumbered for certain purposes until the Budget Act is
enacted. This bill authorizes the Controller to make estimates in order to implement these
provisions.
COMMENTS
Due to the loss of transportation funds in recent state budget acts, and the uncertainty of
transportation revenue sources, it is very important that the gas tax revenues continue to be
appropriated without delay. AB 697 ensures that both the state and local portion of the gas tax
monies will continue to flow in the case of a delayed budget adoption.
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It is recommended that the City Council join the League of California Cities and support AS 697.
3. AS 712 (Canciamilla) - Land Use: Density
CURRENT LAW
Existing law requires each city, county, or city and county to ensure that its housing inventory
program of adequate sites identified in its housing element can accommodate its share of the
Regional Housing Need Assessment (RHNA) throughout the planning period. Existing law prohibits
a city, county, or city and county from reducing, requiring, or permitting the reduction of the
residential density to a lower density than what was utilized by the Department of Housing and
Community Development (HCD) in determining compliance with housing element law. In order to
reduce the residential density, the city, county, or city and county must make written findings
supported by substantial evidence that the reduction is consistent with the adopted general plan,
including the housing element, and the remaining sites identified in the housing element are
adequate to accommodate the jurisdiction's share of the regional housing need. The city, county or
city and county may also reduce the residential density for a parcel if it identifies sufficient additional
sites, as prescribed by existing law.
PROPOSED LAW
AS 712 requires that every local jurisdiction with a general plan ensure that its housing element
inventory, or program to make sites available, can accommodate the RHNA throughout the planning
period. This bill requires a local government to make specified written findings supported by
substantial evidence if it reduces housing density for sites identified in its housing element below the
total housing unit capacity for its inventory. AS 712 also provides that, if the HCD has utilized a
specific density to determine a local government's compliance with the RHNA requirement, the local
government must plan to provide sites for the portion of its RHNA allotment not provided for in its
inventory of existing sites. Use of HCD specific density by the local government constitutes "lower
residential density" and requires written findings. This bill also requires a local government to make
specified written findings supported by substantial evidence if it reduces housing density below 80%
of the maximum allowable residential density for a parcel not identified in its housing element. The
80% limit on downsizing applies only to sites that are currently zoned residential, and that it is meant
to apply specifically to jurisdictions that have failed to adopt a housing element.
COMMENTS
AS 712 modifies the circumstances that trigger the requirement that a local government make a
housing density reduction finding. As presently proposed, AS 712 may affect the City of Poway.
Staff will continue to monitor this bill.
It is recommended that the City Council join the League of California Cities and watch AS 712.
4. AS 1192 (Villines) - Public Works: Prevailina Waaes: Affordable Housina
CURRENT LAW
Existing law generally requires the payment of the general prevailing rate per diem wages to workers
employed on public works projects costing over $1,000 and utilizing public funds, unless the
awarding body elects to initiate and enforce a labor compliance program for every public works
project under the authority of that awarding body. Existing law generally defines "public works" to
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include construction, alteration, demolition, installation, or repair work done under contract and paid
for, in whole or in part, out of public funds. Qualified residential projects and low-income housing
projects are exempt from the general law definition of public works and the prevailing wage
requirements.
PROPOSED LAW
AB 1192 additionally exempts from the definition of "public work" and the prevailing wage
requirements, the construction, expansion, or rehabilitation of affordable housing units for low- and
moderate-income persons, performed by a nonprofit organization.
COMMENTS
Housing for low-income households typically requires public subsidies (often above $100,000 per
unit) to ensure that these units are constructed and maintained at affordable rents. SB 975
(Alarcon), of 2001, which requires affordable housing builders to pay prevailing wages, has
significantly increased the cost of building these affordable housing units, thus reducing the total
amount of affordable housing units produced. AB 1192 exempts the construction, expansion, or
rehabilitation of affordable housing by non-profit organizations from prevailing wage requirements.
This bill recognizes the limited amount of affordable housing compared to the state's overall need,
and supports the development of as many units as possible from the limited pool of affordable
housing funds.
It is recommended that the City Council join the League of California Cities and support AB 1192.
5. AS 1234 (Salinas) - Local Aaencies: Compensation and Ethics
CURRENT LAW
Existing law provides for the establishment and operations of cities, counties, cities and counties,
districts, and other local government agencies, the composition of their governing bodies. Existing
law also provides the payment of governing body members for attending meetings and performing
other duties, and prescribes conflicts of interest.
PROPOSED LAW
AB 1234 requires a local agency that provides reimbursement for expenses to members of its
legislative body to adopt a written policy on the duties for which legislative body members may
receive compensation, other than meetings of the legislative body or an advisory body, or
attendance at a conference. This bill requires a governing body to adopt a written policy, in a public
meeting, concerning what occurrences qualify a member to receive reimbursement of expenses for
travel, meals, and lodging. Related requirements would be imposed including the filing of expense
reports, which would be public record. This bill also requires that if a local agency provides any type
of compensation, salary, or stipend to, or reimburses the expenses of, a member of the legislative
body, each body member and each designated employee of the local agency receives training in
ethical standards of conduct, as specified.
COMMENTS
Responding to reports by the State Auditor's Office, dozens of newspaper articles, and public
requests regarding inappropriate uses of local tax dollars, the author has introduced AB 1234, which
requires local governments to act with more transparency when they deal with issues such as
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compensation and travel reimbursements. As a result of the increased misuse of public funds, the
reputations of many local governments that have done nothing wrong have been damaged due to
the actions of a few individuals.
It is recommended that the City Council join the League of California Cities and support AS 1234.
6. AB 1331 (Umberal- Workers' Compensation: Apportionment: Presumptions
CURRENT LAW
Existing law generally requires employers to secure payment of workers' compensation, including
medical treatment, for injuries incurred by their employees that arise out of, or in the course of,
employment. In the case of certain state and local public safety employees, the term "injury"
includes hernia, heart trouble, and pneumonia that developed or manifested itself during a period
while the person is in that service. Existing law further establishes a disputable presumption in this
regard and prohibits these medical conditions from being attributed to any disease existing prior to
the development or manifestation of that medical condition. Existing law requires any physician who
prepares a report addressing the issue of permanent disability due to a claimed industrial injury to
address the issue of causation of the permanent disability, and limits the employer's liability to the
percentage of permanent disability directly caused by the injury.
PROPOSED LAW
AB 1331 requires that permanent disability physician apportionment and causation provisions as
outlined by existing law, do not apply to certain state and local public safety employees. These
employees are exempt from the 100 percent limit on permanent disability awards outlined by existing
law.
COMMENTS
AS 1331 is intended to clarify current law and return the treatment of public safety employees'
permanent disability calculations to a pre-SB 899 (existing law status), presumed maximum benefits
for certain injury-related disabilities. As currently drafted, AB 1331 may allow for multiple awards,
with no regard for prior injuries. This bill not only exempts the presumptive injuries from the SB 899
new rule of apportionment, but the bill exempts these presumptive injuries from any kind of
apportionment. Therefore an employee may repeatedly collect permanent disability awards for the
same disability.
It is recommended that the City Council join the League of California Cities and oppose AB 1331.
7. AS 1390 (Jonesl- Housing
CURRENT LAW
Existing law requires a redevelopment agency to use at least 20% of its tax increment revenues for
the purposes of increasing, improving, and preserving the community's supply of low- and moderate-
income housing available at an affordable cost to persons and families of moderate, low, very low,
and extremely low income households unless the agency makes certain findings. Existing law
makes a redevelopment agency liable for all court costs and plaintiffs attorney's fees, and requires
the agency to allocate not less than 25% of its tax increment revenues to its Low and Moderate
Income Housing Fund every year if a court determines that the agency knowingly misrepresented
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any material facts regarding the community's share of its regional housing need for low- and
moderate-income housing, or the community's production record in meeting its share of the regional
housing need. Existing law also requires dwelling units housing persons and families of low and
moderate income that are destroyed or removed from the low- and moderate-income housing
market, as part of a redevelopment project, to be rehabilitated, developed, or constructed. The
required number of those new or rehabilitated dwelling units is contingent upon whether those units
are developed by the agency or by public or private entities, or persons other than the agency. For
the purposes of this requirement, "substantially rehabilitated dwelling units" include all units
substantially rehabilitated with agency assistance on and before January 1, 2002, includes
substantially rehabilitated multifamily rented dwelling units with one or two units that are substantially
rehabilitated with agency assistance. "Substantial Rehabilitation" is also defined as meaning
rehabilitation with a value constituting 25% of the after-rehabilitation value of the dwelling, inclusive
of land value. Existing law repeals these definitions on January 1, 2006.
PROPOSED LAW
AS 1390 provides a 1 O-year statute of limitations period for actions to compel compliance with a
redevelopment agency's obligation to deposit not less than 20% of their "tax increment" funds into
their Low- and Moderate-Income Housing Fund (L&M Fund); the action accrues on the last day of
the fiscal year of the required deposit. This bill also provides a 1 O-year statute of limitations period to
bring actions against redevelopment agencies for improper expenditures of the L&M Fund, accruing
on the date of the actual expenditure of the funds. This bill requires an agency which has deposited
inadequate funds or unlawfully expended funds to repay the funds with interest, and provides several
methods for repayment of the funds. AS 1390 repeals the sunset date of January 1, 2006, for the
definition of "substantial rehabilitation."
COMMENTS
AS 1390 would provide a 10-year statute of limitation to bring a lawsuit against redevelopment
agencies for violations of specified redevelopment law related to an agency's L&M Fund. As
presently proposed, AS 1390 may affect the City of Poway. Staff will continue to monitor this bill.
It is recommended that the City Council join the League of California Cities and watch AS 1390.
8. ACA 13 (Harman) - Local Government: Assessments and Fees or Charaes
CURRENT LAW
The California Constitution conditions the imposition or increase of an assessment by a city, county,
or special district for flood control purposes upon compliance with requirements for written notice to
property owners, a public hearing, and an opportunity for majority protest. The California
Constitution exempts the imposition of a flood control assessment existing on November 6, 1996,
from these requirements. With the exception of fees or charges for sewer, water, and refuse
collection services, the California Constitution conditions the imposition or increase of a property-
related fee or charge upon the approval by a majority vote of the property owners subject to the fee
or charge, or at the option of the entity imposing the fee or charge, by a 2/3 vote of the electorate
residing in the area affected by the fee or charge.
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PROPOSED LAW
ACA 13 exempts from existing law requirements, an assessment for the purposes of financing the
capital costs or maintenance and operation expenses of flood control, whether the assessment
existed on November 6, 1996, or was imposed after that date. This measure also excludes from
property owner approval and voter approval, requirements for a fee or charge related to flood control,
storm water drainage, or surface water drainage.
COMMENTS
ACA 13 would add flood control and storm water fees to those types of fees that are exempt from
the voter approval requirement of Proposition 218. If passed by the legislature, ACA 13 would
appear on the next statewide general election. If passed by the voters, it would authorize cities and
counties to adopt storm water and flood control fees without voter approval. This authorization is
similar to fees that are already exempt from the voter approval process of Proposition 218 for sewer,
water, or refuse collection services.
ACA 13 gives cities and counties another method to fund local storm control programs. Currently,
cities and counties are struggling to find ways to pay for implementation of their NPDES storm water
permits. In addition, the inclusion of flood control in this measure is an importanttool for cities, such
as the City of Poway, to address potential flooding problems to keep their communities safe.
It is recommended that the City Council join the League of California Cities and support ACA 13.
9. 58 44 (Kehoe) - General Plans: Air Quality Element
CURRENT LAW
Existing law requires the legislative body of each city and county to adopt a comprehensive, long-
term general plan for the physical development of the city or county, and of any land outside its
boundaries that bears relation to its planning. The law requires the plan to include a specified land
use element that designates the proposed general distribution and general location and extent of the
uses of the land for housing, business, industry, open space, and other categories of public and
private uses of land. Existing law specifically requires the legislative body of each city and county
within the jurisdictional boundaries of the San Joaquin Valley Air Pollution Control District to amend
appropriate elements of its general plan to include specified information to improve air quality,
including a report describing local air quality conditions.
PROPOSED LAW
SB 44 makes a legislative finding that air pollution is a serious problem in California. This bill
requires the legislative body of each city and county located in specified areas to either adopt an air
quality element as part of its general plan or amend the appropriate elements of its general plan.
Amendments include data and analysis, comprehensive goals, policies, and feasible implementation
strategies intended to contribute to and complement other local, regional, state, and federal
strategies to improve air quality no later than one year from the date specified for the next revision of
its housing element that occurs after January 1,2007. SB 44 requires all other cities and counties to
comply with these provisions during their next general plan update but no later than the date
specified for the 5th revision of their housing element that occurs after January 1, 2007. This bill also
requires each city and county, at least 45 days prior to the adoption of an air quality element of the
amendment of a general plan, to send a copy of the draft document to the air quality management
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district or air pollution control district in which it is located for review, comment, and
recommendations. A city or county that adopts an air quality element or amendments to its general
plan prior to January 1, 2007, shall be deemed to have met the requirements of the bill, if the city or
county makes a specified written finding.
COMMENTS
As introduced, the bill requires local governments to adopt amendments to their general plans to
address air quality. However, there are concerns regarding the requirement that local governments
address sources of air pollution over which it has no control. As presently proposed, SB 44 may
affect the City of Poway. Staff will continue to monitor this bill.
It is recommended that the City Council watch SB 44.
10. S8 326 (Dunnl- Land Use: Housina Elements
CURRENT LAW
Existing law requires a multifamily residential housing project to be a permitted use, not subject to a
conditional use permit, on any parcel zoned for multifamily housing if at least certain percentages of
the units are available at affordable housing costs to very low-income, lower-income, and moderate-
income households for at least 30 years if the project meets specified conditions. Among those
conditions are that the project is subject to a discretionary decision, other than a conditional use
permit, and a negative or mitigated negative declaration has been adopted for the project under the
California Environmental Quality Act (CEQA). Existing law permits the negative or mitigated
negative declaration to be adopted only after a public hearing to receive comments on that
declaration if a public hearing is not held with respect to the discretionary decision.
PROPOSED LAW
SB 326 amends the Planning and Zoning Law provision to change the term "multifamily residential
housing," to "attached housing development," as a structure containing two or more dwelling units.
This bill specifies that the provision amendment does not relieve a public agency from complying
with CEQA or the Subdivision Map Act.
COMMENTS
The goal of SB 326 is to promote flexibility and use of different kinds of affordable housing in in-fill by
including smaller multifamily housing, within the SB 619 definition that does not require a conditional
use permit (CUP) but is still subject to affordable housing, Subdivision Map Act, CEQA, and other
existing law requirements. As presently proposed, SB 326 may affect the City of Poway. Staff will
continue to monitor this bill.
It is recommended that the City Council join the League of California Cities and watch SB 326.
11. S8 729 (Lowenthall- Water QualitV
CURRENT LAW
Under the Porter-Cologne Water Quality Control Act, the State Water Resources Control Board and
the California Regional Water Quality Control Boards are the principal state agencies with primary
authority over water quality matters.
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PROPOSED LAW
SB 729 requires the State Water Resources Control Board to hold regular meetings at least once a
month. This bill also requires at least one member of the State Board to attend each meeting of a
regional water quality control board during each calendar year. SB 729 contains other related
provisions and other existing laws.
COMMENTS
SB 729 would make sweeping changes to the State Water Resources Control Board's (SWRCB)
and Regional Water Quality Control Boards' (Regional Board) structure and programs. This bill
would require storm water permits to contain enforceable numeric limits, which is not feasible without
expenditure of billions of dollars of local taxpayer revenues due to the nature of municipal storm
water discharges. SB 729 excludes capable people with valuable practical experience in
implementing water quality programs from serving on Regional Boards. This bill also requires local
governments to notify the appropriate Regional Board of the preparation of a tentative subdivision
map or application for a building permit that could involve the discharge of waste. This creates a
new unfounded local mandate without any demonstrated environmental benefit. In addition, this
requirement is not the appropriate point in the development approval process to address potential
discharge issues. Furthermore, SB 729 requires the SWRCB and Regional Boards post on a public
database any complaints they receive from the public that are related to "possible" water quality
problems or "potential" illegal discharges. The bill does not require the SWRCB or the Regional
Boards to verify the accuracy of complaints submitted by the public prior to posting the information
on the SWRCB website. Therefore, those individuals who access the database will get an
unwarranted impression that the complaints are reliable.
These are a few concerns associated with SB 729. There are also concerns with respect to how the
bill would revise the total maximum daily load (TMDL) program of water consumption and the way in
which the bill emphasizes measuring enforcement results. Overall, the bill's sweeping changes
would impose additional costs and require additional funding that the SWRCB, Regional Boards, and
the regulated community can neither afford nor deliver unless drastic measures, such as fee
increases, also occur.
It is recommended that the City Council join the League of California Cities and oppose SB 729.
12. 58820 (Kuehl)- Water
CURRENT LAW
Under Article X of the California Constitution, the right to use water is limited to the amount of water
that is reasonably required for the beneficial use of that water, and that right does not extend to the
waste or unreasonable use, method of use, or method of water diversion.
PROPOSED LAW
SB 820 establishes other factors for consideration with regard to a determination as to the
reasonableness of a water use, method of use, or method of diversion.
COMMENTS
SB 820 would establish water conservation as a consideration for determining reasonable use,
establish requirements for reporting annual use of water under various water rights, establish
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consequences for failing to file required reports, and add additional requirements on a range of water
resources planning processes. The author is currently working in conjunction with various
stakeholders on amendments for S8 820. Staff will continue to monitor this bill.
It is recommended that the City Council join the League of California Cities and watch S8 820.
13. 58995 (Florezl- Tax Exempt Bonds for Tribal Nations
CURRENT LAW
The Personal Income Tax Law imposes a tax on individual taxpayers measured by the amount ofthe
taxpayer's taxable income for the taxable year, but excludes certain items of income from the
computation of tax. The Personal Income Tax Law, in conformity with federal income tax laws,
exempts from tax interest any bonds issued by the State of California or a local government in this
state.
PROPOSED LAW
S8 995, in conformity with federal income tax laws, additionally exempts from taxation interest on
bonds issued by a federally recognized Indian tribal government located in the State of California,
but only if specified requirements are met. Upon passage, this bill would take effect immediately as
a tax levy.
COMMENTS
Presently, California Indian tribes have access to tax-exempt bonds through conduit revenue bonds.
The process for issuing conduit bonds ensures that public impacts to be funded by the bonds will be
reviewed. Major projects funded by bonds often translate into increased pressure on public safety
services, infrastructure such as streets and roads, and the environment in the surrounding
communities. The conduit bond process maintains public accountability for projects that can strain
local resources and remains a viable option for tribal governments to utilize.
S8 995 requires tribal governments to adopt an environmental ordinance, which replaces the conduit
process, in order to issue tax-exempt bonds. With passage of this bill, California tribal governments
would be exempt from complying with a myriad of state laws that local governments, that are
afforded the privilege of issuing tax-exempt bonds, are required to comply with.
It is recommended that the City Council join the league of California Cities and oppose S8 995.
14. 581059 (Escutial- Electric Transmission Corridors
CURRENT LAW
Existing law requires the State Energy Resources Conservation and Development Commission
(Commission) to adopt a strategic plan for California's electric transmission grid using existing
resources. Existing law requires that the plan identify and recommend actions required to implement
investments needed to ensure reliability, relieve congestion, and to meet future growth in load and
generation, which includes renewable resources, energy efficiency, and other demand reduction
measures.
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PROPOSED LAW
SB 1059 authorizes the Commission to designate a transmission corridor zone on its own motion or
by application of a person who plans to construct a high-voltage electric transmission line within the
state. The designation of a transmission corridor would serve to identify a feasible corridor in which
a future transmission line can be built that is consistent with the state's needs and objectives as set
forth in the strategic plan adopted by the commission. This bill prescribes procedures for the
designation of a transmission corridor, including publication of the request for designation and
request for comments, coordination with federal agencies and California Native American
governments, informational hearings, and requirements for a proposed decision.
S8 1059 requires the Commission, after designating a transmission corridor zone, to identify that
transmission corridor zone in its subsequent strategic plans and to regularly review and revise its
designated zones as necessary, but not less than once every six years. This bill requires a city or
county, within 10 days of accepting as complete, an application for a development project within a
designated transmission corridor zone, to notify the Commission of the proposed development
project if the city or county determines the project would threaten the potential to construct a high-
voltage electric transmission line. Upon making a specified finding regarding the proposed
development project, the Commission is required to provide written comments to the city or county
for their consideration. If the Commission on State Mandates determines that this bill contains costs
mandated by the state, reimbursement for those costs shall be made pursuant to these statutory
provisions.
COMMENTS
As currently drafted, S8 1059 would authorize the state to impose upon local governments
transmission corridor zones (TCZs) in a way that would impact future uses of the land without
adequate property owner compensation and require local governments to amend their general plans
to be consistent with the Commission's designation of TCZs. The bill does not include adequate
stakeholder input in developing the TCZs, nor adequate property owner notification. S8 1059 fails to
actually provide for comprehensive statewide transmission corridor planning. The practical effect is
a piecemeal, non-comprehensive, approach to corridor planning, and would result in requiring cities
and counties to amend the general plans whenever a corridor is designated or de-designated. S8
1059 would result in local land use preemption, costly and mandatory general plan revisions for local
governments, uncertainty and confusion regarding what is a compatible use or permitted project
within a TCZ (impacting both local governments and the development community), and potential
regulatory takings lawsuits filed against local governments.
It is recommended that the City join the League of California Cities and oppose S8 1059 unless
amended.
ENVIRONMENTAL REVIEW
This report is not subject to CEQA review.
FISCAL IMPACT
Staff is currently reviewing the impact of the proposed legislation.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
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June 7, 2005 Item # iLl
Approval of Position on Pending Legislation
June 7, 2005
Page 12
RECOMMENDATION
It is recommended thatthe City Council support AB 697, AB 1192, AB 1234, and ACA 13; oppose
AB 343, AB 1331, SB 729, SB 995, and SB 1059 unless amended; and watch AB 712, AB 1390, SB
44, SB 326, and SB 820; and inform members of the State Legislature, organizations, and
committees of the City's position.
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June7,2005Item# lti