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HomeMy Public PortalAbout09_10A_Legislative Update_Staff Report 2021_finaMANAGEMENT SERVICES DEPARTMENT MEMORANDUM DATE: January 19, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager By: Tinny Chan, Management Analyst SUBJECT: LEGISLATIVE UPDATE RECOMMENDATION: The City Council is requested to: 1.Receive and file this report on newly enacted state laws that will impact city services and policies; and 2.Direct the City Manager to implement all required procedures and policies in alignment with new and applicable state laws. BACKGROUND: 1.On or before August 31, 2020, the California State Legislature passed a number of regular bills that highlight the state’s focus on relevant issues including: affordable housing, homelessness, police reform, and COVID-19. 2.On or before September 30, 2020, Governor Gavin Newsom signed the bills into law, making them effective Jan. 1, 2021. ANALYSIS: The following provides summaries on pertinent bills that were signed into law and effective Jan. 1, 2021, some of which were mentioned by the City Manager or City Attorney in updates to the City Council in late 2020. The following bills were highlighted in the League of California Cities’ 2020 Legislative Briefing (Attachment “A”). AGENDA ITEM 10.A. City Council January 19, 2021 Page 2 of 8 COMMUNITY SERVICES AB 2213 (Limon) | CalOES Planning Guidance. Telecommunications. • Requires CalOES to develop planning guidance to identify volunteers and donation management resources that could assist in responding to or recovering from disasters. • Expands existing emergency notification programs, with clarification that authorities may use wireless telephone subscriber data to enroll residents in local alerting systems. What this means for Temple City: This measure will allow the City to access contact information of residents through records of SCE and cell phone service subscribers for the purpose of enrolling them into the City's Emergency Notification System. It will also allow the City to access the contact information of the access and functional needs population and their emergency contacts, through social services for the sole purpose of enrolling them in the City's Emergency Notification System. HOUSING AB 434 (Daly) | Housing Finance Programs. • Aligns six rental housing programs with the Multifamily Housing Program, to enable the state Department of Housing and Community Development to use a single application and scoring system for making coordinated awards under all seven programs, starting January 2022. • Allows affordable housing developers to apply for different grant programs with the Multifamily Housing Program with one application. • What this means for Temple City: Streamlines process for affordable housing developers to apply for grants with the State. This does not impact the City operationally. AB 2553 (Ting) | Shelter Crisis Declarations. • Expands on the Shelter Crisis Act AB 932 to all cities and counties in the state. • Allows cities to declare a shelter crisis to allow homeless individuals to occupy public facilities designated as emergency housing such as shelter beds, for the duration of the crisis. • Provides limitation on liability and suspends local housing, health, and safety standards for public facilities to the extent that full compliance would hamper effects of the shelter crisis. What this means for Temple City: This law allows (but does not require) the City to declare a Shelter Crisis to allow homeless individuals to use City facilities as emergency housing, with limited liability. City Council January 19, 2021 Page 3 of 8 AB 168 (Aguilar-Curry) | Planning and Zoning. Streamlined Approvals. • Requires notification and consultation of Native American tribes for proposed developments. This includes a scoping consultation regarding the potential effects the proposed development will have on a potential tribal cultural resource. What this means for Temple City: The City will be providing notice and opportunities to consult with Native American tribes per these new requirements. AB 1561 (Garcia, Cristina) | Planning and Zoning. Housing Element. • Enhances requirement for cities to evaluate impacts of environmental actions and to consider housing costs and associated impacts to minority communities. • Time frame for environmental impact reporting will be extended by 18 months. • Extends by 30 days, the time frame for CEQA for a Native American Tribe to respond to a lead agency relating to an environmental impact report for any housing development project application. What this means for Temple City: The City will be providing notice and opportunities to consult with Native American tribes per these new requirements. AB 725 (Wicks) | General Plans. Housing Element. Moderate-income and above- income housing. Suburban and Urban Jurisdictions. • Requires suburban and urban jurisdictions, though their housing element process, to ensure that at least 25 percent of their regional housing need for moderate- income housing be allocated to sites with zoning that allows at least four units of housing, but no more than 100 units per acre of housing. • Does not apply to housing elements due before Jan. 1, 2022. What this means for Temple City: Temple City is in the midst of updating its Housing Element from now until October 2021. The law will not apply to Temple City as the Housing Element is due before Jan. 1, 2022. Important to keep in mind for future Housing Element updates. AB 2345 (Gonzalez) | Planning and Zoning. Density Bonuses. Annual Report. • Revises Density Bonus Law to increase maximum allowable density and the number of concession and incentives a developer can seek. • Requires annual reporting that includes information on density bonuses granted in accordance with the law. What this means for Temple City: This means that developers who provide a certain percentage of units at an affordable rate will be able to exceed the density allowed in the City’s General Plan and Zoning Code. Developers will also be allowed to receive “concessions” and “incentives” (in other words, variances) from City zoning codes that inhibit the developer from building the maximum density. Lastly, the City is required to annually report information on density bonuses that we granted. Temple City has never received a density-bonus application, however, these provisions could pique local development interest. City Council January 19, 2021 Page 4 of 8 AB 3088 (Chiu) | Tenancy. Rental Payment Default. Mortgage Forbearance. State of Emergency. • Tenants unable to pay their full rent due to COVID-19 accrued March 31, 2020 to January 31, 2021 but have paid at least 25% of the back rent by January 31, 2021 cannot be evicted. • Beginning February 1, 2021, landlords may evict tenants that do not pay at least 25% of back rent. • In light of ongoing COVID-19 surges, the State is considering an extension of this program. What this means for Temple City: While the City enacted a temporary eviction moratorium on March 31, 2020, the moratorium was superseded by the State's eviction moratorium extensions throughout 2020. To mitigate potential evictions of TC residents, the City is using its CDBG CARES Act funding on a residential rental assistance program. AB 1851 (Wicks) | Religious Institution Affiliated Housing Development Projects. Parking Requirements. • Requires local agencies to ministerially approve a request to that local agency to reduce or eliminate any parking requirements that would otherwise be imposed by that local agency on the development if the housing development project qualifies as a faith-based organization affiliated housing development project, as defined. • Prohibits local agencies from requiring the replacement of religious-use parking spaces as part of an affordable housing development. • Prohibits local agencies from denying a housing development proposed by religious institutions solely on the basis that the project will reduce the total number of parking spaces available, provided that the total reduction of spaces does not exceed 50% of existing parking spaces. • Cannot provide less than one space per residential unit, unless the development is located within one-half mile walking distance of a high-transit corridor, or major transit stop; or within one block of a car share vehicle. What this means for Temple City: The potential impacts of this law remain to be seen. Churches and other religious facilities within the City would be able to construct housing with certain exceptions from the City’s codes related to the required parking for the church and the multi-family use. Should any desire to take action under the law, the City would have to comply with the law’s requirements in working with them. PUBLIC SAFETY AB 1775 (Jones-Sawyer) | False Reports and Harassment • Increases penalties for knowingly using the 911 emergency system for the purpose of harassing another based on perceived characteristics of a protected class. City Council January 19, 2021 Page 5 of 8 • Allows for civil action against persons who make false police reports or claims, regardless of discriminatory motive, and classifies blatantly false reports to law enforcement as a form of intimidation. What this means for Temple City: Since the City is contracted with Los Angeles County Sheriff’s Department, this would not affect the City operationally. It is important, however, to understand how City operations to cross over with Sheriff’s Department operations and the potential for complainants to the City to also be complaining to the Department. REVENUE AND TAXATION SB 1441 (McGuire) • Extends operation of the local prepaid Mobile Telephone Services Act until January 1, 2026. • Allows local agencies to continue to collect UUT on retail sales of prepaid wireless products and services. What this means for Temple City: Nothing. The City does not collect User Utility Tax. As with many tax matters, this is presented for informational purposes related to the City’s financial stability and sound fiscal policy. ACA 11 (Mullin) | Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act. • The measure is Proposition 19, which passed during the General Election in November, 2020. • Authorizes an owner of a property who is over 55 years old, disabled, or a victim of wildfire or natural disaster to transfer the taxable value of their primary residence located anywhere in the state, regardless of location or value of the replacement primary residence, within two years of the sale of the original primary residence. What this means for Temple City: This measure would allow senior residents, disabled persons, and victims of a natural disaster to transfer the taxable value of their primary residence, within two years of the sale, to anywhere in the state, regardless of location or value. For City financial purposes, it could have the effect of freezing or even reducing the property tax basis on homes purchased by such persons. The impact does not appear to be major. SB 74 (Mitchell) | Budget Act of 2020 • $500 million to cities from the State’s share of the federal Coronavirus Relief Fund. Nearly all funds have been distributed. • $300 million to the Homeless Coordinating and Financing Council. • $550 million through HUD for acquisition and rehabilitation of motels, hotels, or hostels. What this means for Temple City: The City has received its CARES Act allocation and have applied the funds to a Temporary Residential Rental Assistance program and a Small Business Relief grant program. City Council January 19, 2021 Page 6 of 8 AB 85 (Committee on Budget) | State Taxes and Charges. • Makes changes that improve collection, reporting, limit tax credit, and extend sale tax exemptions. Specifically, this measure: o Requires used car dealers to remit the sales tax from a vehicle sale to the Department of Motor Vehicles with the registration fee. This change is projected to increase state and local revenues by millions of dollars; and o Extends the sales and use tax exemption for diapers for infants, toddlers, and children, and menstrual hygiene products to July 1, 2023. What this means for Temple City: Sales tax exemptions on the above items will mean a slight decrease in sales tax revenue for the City. AB 1869 (Committee on Budget) | Criminal Fees. • This measure, beginning July 2021, repeals statutes related to a set of statutorily- defined criminal fees collected for administrative purposes. These fees are: o $25 Administrative Processing Fee; o $10 Citation Processing Fee; o Public Defense Fees; o Cost of Counsel; o Public Defense Registration Fee; and o Public Defense Fees for Minors. o What this means for Temple City: This law would not impact the City operationally. AB 1872 (Committee on Budget) | Cannabis. • Prohibits the California Department of Tax and Fee Administration from adjusting the state excise tax on cannabis upward until July 1, 2021 and from adjusting the cultivation tax for inflation until 2021. • This measure also clarifies that the Board of State and Community Corrections is prohibited from making grants to local governments that have banned indoor and outdoor commercial cannabis cultivation or have banned the retail sale or cannabis or cannabis products. What this means for Temple City: The City prohibits indoor and outdoor commercial cannabis cultivation and have banned the retail sale or cannabis or cannabis products. Due to this, the City cannot receive grants from the Board of State and Community Corrections. This law would not impact the City operationally. SB 98 (Committee on Budget and Fiscal Review) | Education Finance. • This measure requires the State Controller’s Office, in consultation with the Department of Finance, to develop guidance for the allocation of K-12 Educational Revenue Anticipation Fund (ERAF) by county auditor controllers. This will have significant impact on ERAF allocations going forward. What this means for Temple City: This law would not impact the City operationally in the immediate term but could affect future ERAF allocations. City Council January 19, 2021 Page 7 of 8 TRANSPORTATION, COMMUNICATIONS, AND PUBLIC WORKS AB 1286 (Muratsuchi) | Shared Mobility Devices. Agreements. • Requires shared mobility device providers to obtain a permit or agreement with the city or county it seeks to operate in and comply with all local operation, parking, maintenance, and safety rules. • Additionally, this measure requires shared mobility device providers to maintain minimum commercial general liability insurance coverage of not less than $1 million for each occurrence of bodily injury or property damage, and not less than $5 million aggregate for all occurrences during the policy period. What this means for Temple City: Should a shared mobility device provider want to operate in Temple City, it will need to comply with all of the City’s rules on parking, maintenance, safety, etc. as well as obtain general liability insurance coverage. This would protect the City from liability, as well as give the City more control in how shared mobility devices operate in the City. GOVERNANCE, TRANSPARENCY AND LABOR RELATIONS SB 970 (Umberg) | Primary Election Date. • Changes the date of statewide direct primary to the first Tuesday after the first Monday in June in even-numbered years in which there is no presidential primary. What this means for Temple City: In light of recent court decisions relating to the impact of State law on charter city elections, this law will have no immediate effect on the City’s election date. AB 685 (Reyes) | COVID-19. Imminent Hazard to Employees. Exposure. Notification. • Requires that if an employer or representative of the employer receives a notice of potential exposure to COVID-19, the employer must take a prescribed set of actions within one business day of the notice of potential exposure. What this means for Temple City: The City must take action to notify City employees of potential COVID-19 exposure within one business day of receiving notice. AB 2257 (Gonzalez) | Worker Classification. • Provides that public agencies may engage in bona fide business to business relationships without having the contracted business be classified as employees under the AB 5 (2019) employment test. What this means for Temple City: This bill helps protect the City from certain liabilities when contracting services from businesses. SB 1159 (Hill) | Workers’ Compensation. COVID-19. • Defines “injury” for an employee to include illness or death resulting from COVID- 19 under specified circumstances, until January 1, 2023. The measure creates a disputable presumption, as specified, that the injury arose out of and in the course of the employment and is compensable, for specified dates of injury. City Council January 19, 2021 Page 8 of 8 • Measure requires employees to exhaust their paid sick leave benefits and meet specified certification requirements before receiving any temporary disability benefits. What this means for Temple City: City employees may file for workers’ compensation if they contract COVID-19 while working. The employee must exhaust all of their paid sick leave benefits and meet certain requirements. AB 992 (Mullin) | Open Meetings. Local Agencies. Social Media. • Provides that, until January 1, 2026, a member of a legislative body covered by the Brown Act may engage in separate conversations or communications outside of a meeting authorized by this act with any other person using social media platforms. • The communications may be to answer questions, provide information to the public, or to solicit information from the public regarding a matter that is within the jurisdiction of the legislative body. • An elected official may not respond to any communication on social media, regarding a matter that is within their jurisdiction that is made, posted, or shared by any other member of the legislative body. What this means for Temple City: City Councilmembers may engage with the public on social media platforms, so long as they are answering questions or giving information regarding matters within their jurisdiction. Councilmembers may not respond to one another (even by “liking” or “sharing” comments) and should not like or comment on a post by a member of the public that another Councilmember has already liked or commented on. CITY STRATEGIC GOAL: Actions contained in this report align with the strategic goals of economic development, sustainable infrastructure and good governance. FISCAL IMPACT: There is no fiscal impact associated with the requested Council action. ATTACHMENT: A. League of California Cities’ 2020 Legislative Briefing 2020 Legislative Briefing Bills Signed into Law Webinar Thursday, November 19, 2020 10:00 a.m. –12:00 p.m. League of California Cities │ www.cacities.org ATTACHMENT A Agenda •Introduction and Overview •Community Services •Environmental Quality •Housing, Community, and Economic Development •Public Safety •Revenue and Taxation •Transportation, Communications, and Public Works •Governance, Transparency, and Labor Relations •What to Expect in 2021 ATTACHMENT A Introduction and Overview Jason Rhine Assistant Legislative Director jrhine@cacities.org League of California Cities │ www.cacities.org ATTACHMENT A Housekeeping Notes for Attendees 1. Please make sure your audio is connected. You should have been prompted to connect your audio when joining the webinar, but you can confirm by clicking the audio settings on your tool bar. 2. All attendees have been muted upon entry. 3. This webinar is being recorded. ATTACHMENT A How to Ask a Question League of California Cities® │ www.cacities.org You can also “up vote” other attendee’s questions if you have the same question. This will help speakers prioritize questions during the Q&A portion of the presentation. ATTACHMENT A Melanie Perron, Deputy Executive Director Advocacy and Public Affairs Jason Rhine, Assistant Legislative Director Housing, Community, and Economic Development Bijan Mehryar, Legislative Representative Governance, Transparency, and Labor Relations Nick Romo, Legislative Representative Revenue and Taxation Derek Dolfie, Legislative Representative Community Services; and Environmental Quality Cal Cities Legislative Team League of California Cities │ www.cacities.org ATTACHMENT A Meg Desmond, Legislative and Policy Development Specialist Johnnie Pina, Legislative Analyst •Housing, Community and Economic Development •Governance, Transparency and Labor Relations •Revenue and Taxation Caroline Cirrincione, Legislative Analyst •Community Services •Environmental Quality •Public Safety •Transportation, Communications and Public Works Cal Cities Legislative Team League of California Cities │ www.cacities.org ATTACHMENT A Community Services Derek Dolfie Legislative Representative ddolfie@cacities.org League of California Cities │ www.cacities.org ATTACHMENT A Natural Disaster Preparedness AB 2213(Limon) Office of Emergency Services. Planning Guidance. Telecommunications. Chapter 98, Statutes of 2020 (Page 16) This measure requires the California Office of Emergency Services and California Volunteers, to develop planning guidance to identify volunteers and donation management resources that could assist in responding to or recovering from disasters. This measure also expands existing emergency notification programs to include cities and universities, by clarifying that emergency alerting authorities may use wireless telephone subscriber data to enroll residents in local alerting systems and authorizes county social service departments to share contact information of seniors and disabled individuals with emergency responders to facilitate mandatory evacuations. League of California Cities │ www.cacities.org ATTACHMENT A Environmental Quality Derek Dolfie Legislative Representative ddolfie@cacities.org League of California Cities │ www.cacities.org ATTACHMENT A Water Quality SB 1044 (Allen) Firefighting Equipment and Foam. PFAS Chemicals. Chapter 308, Statutes of 2020 (Page 24) This measure, commencing January 1, 2022, prohibits the manufacture, sale, distribution, and use of class B firefighting foam containing per-and polyfluoroalkyl substances (PFAS), with limited exceptions for when PFAS chemicals are required by federal law. This measure also requires notification of the presence of PFAS in the protective equipment of firefighters. League of California Cities │ www.cacities.org ATTACHMENT A Housing, Community and Economic Development Jason Rhine Assistant Legislative Director jrhine@cacities.org League of California Cities │ www.cacities.org ATTACHMENT A Housing Finance AB 434 (Daly)Housing Financing Programs. Uniform Procedures. Chapter 192, Statutes of 2020 (Page 31) This measure aligns six rental housing programs with the Multifamily Housing Program, to enable the state Department of Housing and Community Development to implement a single application and scoring system for making coordinated awards under all seven programs, starting on January 1, 2022. League of California Cities │ www.cacities.org ATTACHMENT A Homelessness AB 2553 (Ting)Shelter Crisis Declarations. Chapter 147, Statutes of 2020 (Urgency) (Page 31) This measure expands the Shelter Crisis Act AB 932 (Ting, Chapter 786, Statutes of 2017) to all cities and counties in California. The Shelter Crisis Act allowed certain local jurisdictions that declared a shelter crisis to allow homeless individuals to occupy public facilities designated as emergency housing such as shelter beds, for the duration of the crisis. The Shelter Crisis Act also provides limited liability and suspends local housing, health, and safety standards for public facilities to the extent that full compliance would hamper mitigation of the effects of the shelter crisis. League of California Cities │ www.cacities.org ATTACHMENT A Land Use/Planning AB 168 (Aguiar-Curry)Planning and Zoning. Annual Report. Housing Development. Streamlined Approvals.Chapter 166, Statutes of 2020 (Urgency)(Page 32) This measure requires, after submittal of a SB 35 application, a local government provide formal notice to each California Native American tribe that is traditionally and culturally affiliated with the geographic area of the proposed development and to engage in a scoping consultation regarding the potential effects the proposed development could have on a potential tribal cultural resource. This measure also requires a local government to notify a California Native American tribe if the development or environmental setting substantially changes after the completion of the scoping consultation, and requires the local government to engage in a subsequent scoping consultation if requested by the California Native American tribe. League of California Cities │ www.cacities.org ATTACHMENT A Land Use/Planning AB 1561 (Garcia, Cristina)Planning and Zoning. Housing Element and Entitlement Extensions.Chapter 195, Statutes of 2020(Page 33) This measure requires cities and counties to evaluate the impact of government actions on the cost of housing and associated impacts to minority communities and extends by 18 months, the time frame for the expiration, effectuation, or utilization of a housing entitlement for any housing entitlement that was issued prior to, and was in effect on, March 4, 2020, and will expire prior to December 31, 2021. This measure also extends, by 30 days, the time frame under CEQA for a Native American Tribe to respond to a lead agency and request consultation in writing relating to an environmental impact report for any housing development project application determined or deemed complete on or after March 4, 2020 and prior to December 31, 2021. League of California Cities │ www.cacities.org ATTACHMENT A Land Use/Planning AB 725 (Wicks)General Plans. Housing Element. Moderate- income and Above Moderate-income Housing. Suburban and Metropolitan Jurisdictions. Chapter 193, Statutes of 2020 (Page 34) This measure requires metropolitan and suburban jurisdictions, through their housing element process, to ensure that at least 25 percent of their regional housing need for moderate-income housing be allocated to sites with zoning that allows at least four units of housing, but no more than 100 units per acre of housing. This measure excludes unincorporated areas from this prohibition and does not apply to housing elements due before January 1, 2022. League of California Cities │ www.cacities.org ATTACHMENT A Land Use/Planning AB 2345 (Gonzalez)Planning and Zoning. Density Bonuses. Annual Report. Affordable Housing. Chapter 197, Statutes of 2020 (Page 34) This measure revises Density Bonus Law to increase the maximum allowable density and the number of concessions and incentives a developer can seek. This measure also requires that the annual report include information regarding density bonuses granted in accordance with the law. League of California Cities │ www.cacities.org ATTACHMENT A Landlord–Tenant AB 3088 (Chiu)Tenancy. Rental Payment Default. Mortgage Forbearance. State of Emergency. COVID-19. Chapter 37, Statutes of 2020 (Urgency) (Page 34) This measure establishes a moratorium on evictions for non- payment of rent due to COVID-19 financial hardship. This measure prohibits tenants who so demonstrate from being evicted for failure to pay rent or other charge first, accrued between March 1, 2020 and August 31, 2020 and, second, accrued between September 1, 2020 and January 31, 2021, if they pay 25 percent of the amount owed for the latter period by January 31, 2021. Tenants who fail to pay this 25 percent can be evicted beginning on February 1, 2021. This measure sunsets on January 31, 2021. League of California Cities │ www.cacities.org ATTACHMENT A Parking Requirements AB 1851 (Wicks)Religious Institution Affiliated Housing Development Projects. Parking Requirements. Chapter 196, Statutes of 2020 (Page 42) This measure prohibits 1) a local agency from requiring the replacement of religious-use parking spaces as part of an affordable housing development; and 2) a local agency from denying a housing development project proposed by a religious institution solely on the basis that the project will reduce the total number of parking spaces available at the place of worship provided that the total reduction does not exceed 50 percent of existing parking spaces. League of California Cities │ www.cacities.org ATTACHMENT A Parking Requirements AB 1851 (Wicks)Continued. A parking space reduction shall not allow the religious institution affiliated housing development to provide less than at least one space per residential unit, unless the development is located: •Within one-half mile walking distance of a high-quality transit corridor, or a major transit stop; or •Within one block of a car share vehicle. League of California Cities │ www.cacities.org ATTACHMENT A Questions? League of California Cities│ www.cacities.org ATTACHMENT A Public Safety Jason Rhine Assistant Legislative Director jrhine@cacities.org League of California Cities │ www.cacities.org ATTACHMENT A Emergency Medical Services AB 1544 (Gipson) Community Paramedicine or Triage to Alternate Destination Act.(Page 50) This measure authorizes local emergency medical services agencies to develop community paramedicine or triage to alternate destination programs until January 1, 2024. AB 1544 requires the state's Emergency Medical Services Authority to adopt minimum medical protocols and regulations governing program and training standards. Local emergency medical services agencies that opt to develop such a program must integrate the proposed program into its emergency medical services plan, certify program compliance and staffing of alternate destination facilities, codify strict anti-discrimination protections, and call upon existing advanced life support providers to provide triage paramedic services. League of California Cities │ www.cacities.org ATTACHMENT A Discriminatory Calls to Law Enforcement AB 1775 (Jones-Sawyer) False Reports and Harassment. Chapter 327, Statutes of 2020 (Page 47) This measure increases the penalties for knowingly using the 911 emergency system for the purpose of harassing another based on perceived characteristics of a protected class. This measure allows for civil action against persons who make false police reports or claims, regardless of discriminatory motive, and classifies blatantly false reports to law enforcement as a form of intimidation. League of California Cities │ www.cacities.org ATTACHMENT A Firearms AB 2617 (Gabriel) Firearms. Gun Violence Restraining Orders.Chapter 289, Statutes of 2020(Page 51) This measure ensures individuals who own or possess firearms or ammunition, with the knowledge they are prohibited from doing so because of a valid protective order issued by an out-of-state jurisdiction, is guilty of a misdemeanor.Any violation of this provision also results in a five year ban on purchasing or possessing firearms or ammunition. League of California Cities │ www.cacities.org ATTACHMENT A Revenue and Taxation Nick Romo Legislative Representative nromo@cacities.org League of California Cities │ www.cacities.org ATTACHMENT A Utility Users Tax SB 1441 (McGuire)Local Prepaid Mobile Telephony Services Collection Act. Chapter 179, Statutes of 2020 (Page 65) This measure extends operation of the local prepaid Mobile Telephony Services Act until January 1, 2026, supporting the collection of utility users taxes imposed by local governments on retail sales of prepaid wireless products and services. League of California Cities │ www.cacities.org ATTACHMENT A Property Tax ACA 11 (Mullin) The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.Chapter 31, Statutes of 2020(Page 66) This measure is Proposition 19 of on the November 2020. This measure authorizes an owner of a primary residence who is over 55 years of age, severely disabled, or a victim of a wildfire or natural disaster to transfer the taxable value of their primary residence to a replacement primary residence located anywhere in the state, regardless of the location or value of the replacement primary residence, that is purchased or newly constructed as that person’s principal residence within two years of the sale of the original primary residence. League of California Cities │ www.cacities.org ATTACHMENT A Investments SB 998 (Moorlach)Local Government. Investments.Chapter 235, Statutes of 2020(Page 66) This measure increases the commercial paper limit for cities and special districts that have more than $100 million in investment assets from 25 percent to 40 percent of their total surplus funds and allows local agencies to invest in securities backed or issued by the federal government that could result in zero or negative interest accrual if held to maturity during a period of negative market interest rates. This measure also prohibits cities from investing more than 10 percent of their commercial part and medium-term investments in any single issuer. League of California Cities │ www.cacities.org ATTACHMENT A Fees SB 1386 (Moorlach)Local Government. Assessments, Fees, and Charges. Water. Hydrants.Chapter 240, Statutes of 2020(Page 68) This measure finds and declares that fire hydrants are part of the system of public improvements included in the definition of “water” for purposes of the Proposition 218 of 1996. League of California Cities │ www.cacities.org ATTACHMENT A State Budget SB 74 (Mitchell)Budget Act of 2020.Chapter 6, Statutes of 2020 (Urgency)(Page 5) This measure is the 2020 Budget Act. Notable for local governments, this measure includes the following provisions: •$500 million to cities from the State’s share of the federal Coronavirus Relief Fund. Nearly all funds have been distributed; •$300 million to the Homeless Coordinating and Financing Council; and •$550 million through the Department of Housing and Community Development for acquisition or acquisition and rehabilitation of motels, hotels, or hostels; League of California Cities │ www.cacities.org ATTACHMENT A State Budget League of California Cities │ www.cacities.org ATTACHMENT A State Budget AB 85 (Committee on Budget) State Taxes and Charges.Chapter 8, Statutes of 2020 (Urgency)(Page 9) This measure makes several changes that improve collection, reporting, limit tax credits, and extend sales tax exemptions. Specifically, this measure: •Requires used car dealers to remit the sales tax from a vehicle sale to the Department of Motor Vehicles with the registration fee. This change is projected to increase state and local revenues from these transactions by millions of dollars; and •Extends the sales and use tax exemption for diapers for infants, toddlers, and children, and menstrual hygiene products to July 1, 2023. League of California Cities │ www.cacities.org ATTACHMENT A State Budget AB 1869 (Committee on Budget)Criminal Fees.Chapter 92, Statutes of 2020 (Urgency)(Page 11) This measure, beginning July, 2021, repeals statutes related to the following criminal fees collected for administrative purposes: •$25 Administrative Processing Fee; •$10 Citation Processing Fee; •Public Defense Fees; •Cost of Counsel; •Public Defense Registration Fee; and •Public Defense Fees for Minors. League of California Cities │ www.cacities.org ATTACHMENT A State Budget AB 1872 (Committee on Budget)Cannabis.Chapter 93, Statutes of 2020 (Urgency)(Page 12) This measure prohibits the California Department of Tax and Fee Administration from adjusting the state excise tax on cannabis upward until July 1, 2021 and from adjusting the cultivation tax for inflation until 2021. This measure also clarifies that the Board of State and Community Corrections is prohibited from making grants to local governments that have banned both indoor and outdoor commercial cannabis cultivation or have banned the retail sale of cannabis or cannabis products. League of California Cities │ www.cacities.org ATTACHMENT A State Budget SB 98 (Committee on Budget and Fiscal Review)Education Finance. Education Omnibus Budget Trailer Bill.Chapter 24, Statutes of 2020 (Urgency)(Page 12) This measure requires the State Controller’s Office, in consultation with the Department of Finance, to develop guidance for the allocation of K-12 Educational Revenue Anticipation Fund (ERAF) by county auditor controllers. This measure requires this guidance by December 31, 2020 that may have significant impacts on ERAF allocations going forward. League of California Cities │ www.cacities.org ATTACHMENT A Transportation, Communications, and Public Works Caroline Cirrincione Legislative Analyst ccirrincione@cacities.org League of California Cities │ www.cacities.org ATTACHMENT A Micromobility AB 1286 (Muratsuchi) Shared Mobility Devices. Agreements.Chapter 91, Statutes of 2020(Page 70) This measure requires shared mobility device providers to obtain a permit or agreement with the city or county it seeks to operate in and comply with all local operation, parking, maintenance, and safety rules. Additionally, AB 1286 requires shared mobility device providers to maintain minimum commercial general liability insurance coverage of not less than $1 million for each occurrence of bodily injury or property damage, and not less than five million dollars aggregate for all occurrences during the policy period. League of California Cities │ www.cacities.org ATTACHMENT A Underground Infrastructure SB 865 (Hill) Excavations. Subsurface Installations. Chapter 307, Statutes of 2020 (Page 71) This measure strengthens safe excavation practices by increasing collaboration between excavators and operators, requiring data sharing amongst key stakeholders, and moving the Dig Safe Board to the Office of Energy Infrastructure Safety, which better aligns with the board's mission and operational functions. Specifically, SB 865 requires regional notification centers, which provide warnings of excavations close to existing subsurface installations, to share damage reports with the Dig Safe Board within five days, and provide quarterly reports on all notifications. Notably, SB 865 requires operators to map new subsurface installations using a geographic information system beginning January 1, 2023. League of California Cities │ www.cacities.org ATTACHMENT A Governance, Transparency, and Labor Relations Bijan Mehryar Legislative Representative bmehryar@cacities.org League of California Cities │ www.cacities.org ATTACHMENT A Elections SB 970 (Umberg) Primary Election Date.Chapter 111, Statutes of 2020(Page 26) This measure changes the date of the statewide direct primary to the first Tuesday after the first Monday in June in even-numbered years in which there is no presidential primary. League of California Cities │ www.cacities.org ATTACHMENT A Labor Relations AB 685 (Reyes) COVID-19. Imminent Hazard to Employees. Exposure. Notification. Serious Violations. Chapter 84, Statutes of 2020(Page 26) This measure requires that if an employer or representative of the employer receives a notice of potential exposure to COVID-19, the employer must take a prescribed set of actions within one business day of the notice of potential exposure. ATTACHMENT A Labor Relations AB 2257 (Gonzalez) Worker Classification. Employees and Independent Contractors. Occupations. Professional Services. Chapter 344, Statutes of 2020 (Urgency) (Page 27) This measure provides that public agencies may engage in bona fide business to business relationships without having the contracted business be classified as employees under the AB 5 (2019) employment test. ATTACHMENT A Labor Relations SB 1159 (Hill)Workers’ Compensation. Covid-19. Critical Workers. Chapter 85, Statutes of 2020 (Urgency)(Page 28) This measure defines “injury” for an employee to include illness or death resulting from COVID-19 under specified circumstances, until January 1, 2023. The measure creates a disputable presumption, as specified, that the injury arose out of and in the course of the employment and is compensable, for specified dates of injury. The measure limits the applicability of the presumption under certain circumstances. The measure requires an employee to exhaust their paid sick leave benefits and meet specified certification requirements before receiving any temporary disability benefits or, for police officers, firefighters, and other specified employees, a leave of absence. The measure also makes a claim relating to a COVID-19 illness presumptively compensable, as described above, after 30 days or 45 days, rather than 90 days. ATTACHMENT A Labor Relations SB 1383 (Jackson)Unlawful Employment Practice. California Family Rights Act.Chapter 86, Statutes of 2020(Page 28) This measure expands the California Family Rights Act to make it an unlawful employment practice for any employer with five or more employees to refuse to grant a request by an employee to take up to 12 workweeks of unpaid protected leave during any 12-month period to bond with a new child of the employee or to care for themselves or a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner, as specified. The measure also requires an employer who employs both parents of a child to grant leave to each employee. ATTACHMENT A Governance AB 992 (Mullin)Open Meetings. Local Agencies. Social Media.Chapter 89, Statutes of 2020(Page 29)This measure provides that, until January 1, 2026, a member of a legislative body covered by the Brown Act may engage in separate conversations or communications outside of a meeting authorized by this act with any other person using an internet-based social media platform. The communications may be to answer questions, provide information to the public, or to solicit information from the public regarding a matter that is within the subject matter jurisdiction of the legislative body, provided that a majority of the members do not use the internet-based social media platform to discuss among themselves, business of a specific nature that is within the subject matter jurisdiction of the legislative body. Additionally, a member shall not respond directly to any communication on an internet-based social media platform regarding a matter that is within the subject matter jurisdiction of the legislative body that is made, posted, or shared by any other member of the legislative body. ATTACHMENT A Governance ACA 5 (Weber)Government Preferences. Chapter 23, Statutes of 2020 (Page 30) This measure, if approved by the voters as Proposition 16 of 2020, would repeal Section 31 of Article I of the California Constitution, which was added by Proposition 209 of 1996. This particular section of the California Constitution prohibits the state, cities, counties, community college districts, public university systems, and special districts from discriminating or giving preferential treatment to any individual or group on the basis of race, sex, color, ethnicity, or national original with regard to public employment, public contracting or public education. ATTACHMENT A What to Expect In 2021 League of California Cities │ www.cacities.org ATTACHMENT A Questions? League of California Cities│ www.cacities.org ATTACHMENT A Melanie Perron, Deputy Executive Director Advocacy and Public Affairs mperrron@cacities.org Jason Rhine, Assistant Legislative Director Housing, Community and Economic Development jrhine@cacities.org Derek Dolfie, Legislative Representative Community Services; and Environmental Quality ddolfie@cacities.org Bijan Mehryar, Legislative Representative Governance, Transparency and Labor Relations bmehryar@cacities.org Nick Romo, Legislative Representative Revenue and Taxation nromo@cacities.org Meg Desmond, Legislative and Policy Development Specialist mdesmond@cacities.org Johnnie Pina, Legislative Analyst Housing, Community and Economic Development; Governance, Transparency and Labor Relations; Revenue and Taxation Jpina@cacities.org Caroline Cirrincione, Legislative Analyst Community Services; Environmental Quality; Public Safety; Transportation, Communications and Public Works ccirrincione@cacities.org League Legislative Team Contact Information League of California Cities │ www.cacities.org ATTACHMENT A Thank You! League of California Cities│ www.cacities.org ATTACHMENT A