BILL NUMBER: SB 910	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 24, 2001
	AMENDED IN SENATE  MARCH 27, 2001

INTRODUCED BY   Senator Dunn
   (Coauthors:  Senators Burton, Haynes, and Monteith)

                        FEBRUARY 23, 2001

   An act to amend Sections 65587 and 65589.3 of, and to add Section
65585.5 to, the Government Code, relating to general plans  ,
and making an appropriation therefor  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 910, as amended, Dunn.  General plans:  housing elements.
   (1) Existing law requires each city, county, or city and county to
prepare and adopt a general plan for its jurisdiction that contains
certain mandatory elements, including a housing element.  A city,
county,  a   or  city and county is
required to submit a draft housing element or draft amendment to its
housing element to the Department of Housing and Community
Development for a determination of whether the draft complies with
state law governing housing elements.  Existing law, until June 30,
2009, exempts any local government within the jurisdiction of the San
Diego Association of Governments from this review requirement if it
instead submits to the department with its housing element a
self-certification of compliance with state law.  In an action
brought by any party to review the conformity of a housing element
with applicable state law, a court review shall extend to whether the
housing element, or portion thereof or revision thereto,
substantially complies with that law.
   This bill would require a court, on a finding that there is not
substantial compliance, to award the plaintiff reasonable attorney's
fees and costs and to levy a penalty not to exceed  $1,000
per unit of the total projected housing need for the jurisdiction
  specified amounts based on the population of the city,
county, or city and county  .  The bill would provide that all
penalties shall accrue to the  Housing Supply Account, which the
bill would create in the  Housing Rehabilitation Loan Fund 
, and that no money in that account shall be expended except upon
appropriation by the Legislature  .   Because all money
in this fund is continuously appropriated to the Department of
Housing and Community Development for specified purposes, this bill
would make an appropriation. 
   (2) Existing law provides that, in any action filed on or after
January 1, 1991, challenging the validity of a housing element, there
shall be a rebuttable presumption of the validity of the element or
amendment if the Department of Housing and Community Development has
found that the element or amendment substantially complies with the
applicable law.
   This bill would provide that, in any action filed on or after
January 1, 2002, challenging the validity of a housing element, there
shall be a rebuttable presumption of nonvalidity of the element or
amendment if the department has found that the element or amendment
does not substantially comply.
   This bill would require the Controller to reduce by specified
percentages the monthly allocation of funds disbursed under various
fuel tax laws to any city, county, or city and county whose third or
subsequent revision of its housing element is not in substantial
compliance with state law  or that during the previous housing
element cycle did not adopt a housing element determined by the
department to be in substantial compliance with state law,  and
to redistribute the money in the following month.  The bill would
require the department to report to the Controller monthly a list of
noncompliant jurisdictions.  The bill would state that, for the
purposes of this provision, an authorized self-certification of a
housing element shall be deemed to have been approved by the
department unless a court finds that jurisdiction's housing element
does not substantially comply with state law.
   Vote:   2/3   majority  .
Appropriation:   yes   no  .  Fiscal
committee: yes.  State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 65587 of the Government Code is amended to
read:
   65587.  (a) Each city, county, or city and county shall bring its
housing element, as required by subdivision (c) of Section 65302,
into conformity with the requirements of this article on or before
October 1, 1981, and the deadlines set by Section 65588.  Except as
specifically provided in subdivision (b) of Section 65361, the
Director of Planning and Research shall not grant an extension of
time from these requirements.
   (b) Any action brought by any interested party to review the
conformity with the provisions of this article of any housing element
or portion thereof or revision thereto shall be brought pursuant to
Section 1085 of the Code of Civil Procedure; the court's review of
compliance with the provisions of this article shall extend to
whether the housing element or portion thereof or revision thereto
substantially complies with the requirements of this article. If a
court finds that any housing element or portion thereof does not
substantially comply with the requirements of this article, the
court, in addition to any other remedy allowed by law, shall award
the plaintiff reasonable attorney's fees and costs and shall levy a
penalty not to exceed  one thousand dollars ($1,000) per unit
of the total projected housing need for the jurisdiction as
identified pursuant to Section 65584   the following
amounts:
   (1) One hundred thousand dollars ($100,000) for a city, county, or
city and county with a population less than or equal to 100,000.
   (2) Two hundred fifty thousand dollars ($250,000) for a city,
county, or city and county with a population greater than 100,000 and
less than or equal to 250,000.
   (3) Five hundred thousand dollars ($500,000) for a city, county,
or city and county with a population greater than 250,000 and less
than or equal to 500,000.
   (4) One million dollars ($1,000,000) for a city, county, or city
and county with a population greater than 500,000 and less than or
equal to 1,000,000.
   (5) One million five hundred thousand dollars ($1,500,000) for a
city, county, or city and county with a population greater than
1,000,000.
   For the purposes of this section, the population of a county shall
only include the population residing in unincorporated areas  .
  Any penalties shall accrue to  the Housing Supply Account,
which is hereby created in  the Housing Rehabilitation Loan Fund
established by Section 50661 of the Health and Safety Code  for
the purposes of the Multifamily Housing Program established by
Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31
of the Health and Safety Code. Notwithstanding Section 50661 of the
Health and Safety Code, no money in the Housing Supply Account shall
be expended except upon appropriation by the Legislature in the
annual Budget Act or other legislation  .
   (c) If a court finds that an action of a city, county, or city and
county, which is required to be consistent with its general plan,
does not comply with its housing element, the city, county, or city
and county shall bring its action into compliance within 60 days.
However, the court shall retain jurisdiction throughout the period
for compliance to enforce its decision.  Upon the court's
determination that the 60-day period for compliance would place an
undue hardship on the city, county, or city and county, the court may
extend the time period for compliance by an additional 60 days.
  SEC. 2.  Section 65589.3 of the Government Code is amended to read:

   65589.3.  (a) In any action filed on or after January 1, 1991,
taken to challenge the validity of a housing element, there shall be
a rebuttable presumption of the validity of the element or amendment
if, pursuant to Section 65585, the department has found that the
element or amendment substantially complies with the requirements of
this article.
   (b) In any action filed on or after January 1, 2002, taken to
challenge the validity of a housing element, there shall be a
rebuttable presumption of the nonvalidity of the element or amendment
if, pursuant to Section 65585, the department has found that the
element or amendment does not substantially comply with the
requirements of this article.
  SEC. 3.  Section 65585.5 is added to the Government Code, to read:

   65585.5.  (a) The Controller shall reduce by the 
following  percentages  specified in subdivision (b)
 the monthly allocation of funds dispersed pursuant to
subdivision (d), (e), or (f) of Section 2104 and Sections 2105, 2106,
and 2107 of the Streets and Highways Code to any city, county, or
 city and county unless the city, county, or city and county
has an adopted housing element that the Department of Housing and
Community Development has determined pursuant to Section 65585 to be
in substantial compliance with the requirements of this article:
  city and county that meets both of the following
criteria:
   (1) For the third or subsequent revision of its housing element,
the city, county, or city and county has not adopted a housing
element that the Department of Housing and Community Development has
determined pursuant to Section 65585 to be in substantial compliance
with the requirements of this article.
   (2) The city, county, or city and county, during the previous
housing element cycle, did not adopt a housing element that the
Department of Housing and Community Development has determined
pursuant to Section 65585 to be in substantial compliance with the
requirements of this article.  
   (1)  
   (b) (1)  The allocation shall be reduced by 20 percent for a
city, county, or city and county  that meets the criteria of
subdivision (a) and  whose third or subsequent revision of its
housing element has not been found by the department to be in
substantial compliance within 180 days of the deadline established by
Section 65588.
   (2) The allocation shall be reduced by 40 percent for a city,
county, or city and county  that meets the criteria of
subdivision (a) and  whose third or subsequent revision of its
housing element has not been found by the department to be in
substantial compliance within one year of the deadline established by
Section 65588.
   (3) The allocation shall be reduced by 60 percent for a city,
county, or city and county  that meets the criteria of
subdivision (a) and  whose third or subsequent revision of its
housing element has not been found by the department to be in
substantial compliance within two years of the deadline established
by Section 65588.  
   (b)  
   (c)  Any funds withheld from a city, county, or city and
county pursuant to this section shall be added to the total pool of
funds to be allocated and disbursed in the following month.  

   (c)  
   (d)  For the purposes of this section, an adopted housing
element that has been self-certified pursuant to Section 65585.1
shall be deemed to have been approved by the department, unless a
court finds that the jurisdiction's housing element does not
substantially comply with this article.  
   (d)  
   (e)  The department shall report to the Controller by the
20th day of the month a list of cities, counties, and cities and
counties  whose third or subsequent housing element revisions
  that  , as of the 15th day of that month,
 have not been determined by the department to be in
substantial compliance with the requirements of this article.
  meet both of the criteria described in paragraphs (1)
and (2) of subdivision (a).  The department shall also report
the deadline date for the third or subsequent housing element
revision established in Section 65588 for each respective
jurisdiction on that list.