BILL ANALYSIS
Appropriations Committee Fiscal Summary
910 (Dunn)
Hearing Date: 5/21/01 Amended: 5/08/01
Consultant: Maureen Brooks Policy Vote: H. & C. D.
6-1
Trans. 8-3
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BILL SUMMARY: SB 910 creates a legal presumption that if
the Department of Housing and Community Development (HCD)
finds a jurisdiction out of compliance with housing element
law, there will be a rebuttable presumption of nonvalidity
of the element, and it requires courts to assess penalties
against non-complying jurisdictions as specified. SB 910
establishes the Housing Supply Account for deposit of the
penalties and provides no money will be disbursed from this
account except upon appropriation by the Legislature.
The bill also requires the State Controller to withhold an
increasing percentage of funds disbursed under fuel tax
laws from a local government whose third or subsequent
revision of its housing element is not in substantial
compliance with state law. The withheld funds will be put
into an escrow account and disbursed to the city, county,
or city and county when the HCD determines compliance.
Fiscal Impact (in thousands)
Major Provisions 2001-02 2002-03
2003-04 Fund
Penalty assessment ----------unknown revenue increase----
Special
Controller admin costs --unknown, probably not significant------
General
Fuel funds reduction -------------see comments
below------------ Local
STAFF COMMENTS: SB 910 will result in a reduction in the
allocation of fuel tax revenue offset by increased
allocation in future years when affected local governments
are in compliance with state housing element laws. After a
six month "grace period", the amount of the reduction will
be 20%, increasing to a 40% reduction after one year and a
60% reduction if the jurisdiction has not been found to be
in compliance within two years.
The bill provides that if a court finds that any housing
element does not substantially comply with the requirements
of the state housing element law, the court may award the
plaintiff reasonable attorney's fees and costs. The bill
further requires the courts to levy a penalty not to exceed
$1,000 per unit of the total housing need for the
jurisdiction as identified in the Regional Housing Needs
Assessment.
The HCD will be required to provide the Controller with a
monthly list of cities, counties, and cities and counties
that meet the criteria to have street and highway repair
and maintenance funds withheld.