Item 14 - Status of Pending Legislation
AGENDA REPORT SUMMAR{)iSTHfBUTED (}~~ //,/r'ls
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TO: Honorable ~ayor and Members of the City Council
FROM: James L. Bowersox, City Man~
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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
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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
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- 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:
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- 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.
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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
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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.
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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.
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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
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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
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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.
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