BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2013-2014 Regular Session


          SB 123 (Corbett)
          As Amended April 4, 2013
          Hearing Date: April 16, 2013
          Fiscal: Yes
          Urgency: No
          BCP
                    

                                        SUBJECT
                                           
                          Environmental and land use court

                                      DESCRIPTION  

          This bill would require the Judicial Council to direct the  
          creation of an environmental land use division within two or  
          more superior courts within each of the appellate districts of  
          the state to process civil proceedings brought pursuant to the  
          California Environmental Quality Act or in specified subject  
          areas, including air quality, biological resources, climate  
          change, hazards and hazardous materials, land use planning, and  
          water quality. 

          This bill would require the Judicial Council, by rule of court,  
          to identify statutes in those specified areas that would be  
          within the jurisdiction of the environmental and land use court  
          division. 

          This bill would require the Judicial Council to establish, by  
          rule of court, appropriate standards and protocols for the  
          environmental and land use court division to accomplish the  
          objectives of consistency, expediency, and expertise, including  
          educational requirements and other qualifications for  
          specialized judges assigned to the division.

                                      BACKGROUND  

          Enacted in 1970, the California Environmental Quality Act (CEQA)  
          requires state and local agencies to follow a set protocol to  
          disclose and evaluate the significant environmental impacts of  

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          proposed projects and adopt feasible measures to mitigate those  
          impacts.  CEQA itself applies to "projects" undertaken or  
          requiring approval by state and local agencies, and, if more  
          than one agency is involved, CEQA requires one of the agencies  
          to be the "lead agency."  The subsequent environmental review  
          process required by CEQA consists of:  (1) determining if the  
          activity is a project; (2) determining if the project is exempt  
          from CEQA; and (3) performing an initial study to identify the  
          environmental impacts and, depending on the findings, prepare a  
          Negative Declaration (no significant impacts), Mitigated  
          Negative Declaration (significant impacts but project is revised  
          to avoid or mitigate those impacts), or an Environmental Impact  
          Report (significant impacts).

          To enforce the requirements of CEQA, a civil action may be  
          brought under several code sections to attack, review, set  
          aside, void or annul the acts or decisions of a public agency  
          for noncompliance with CEQA.  Superior courts in all counties  
          with a population of more than 200,000 are required to designate  
          one or more judges to develop expertise in CEQA so that they  
          will be available to hear and quickly resolve CEQA actions  
          (which are given preference over all other civil actions).   
          (Pub. Res. Code Sec. 21167.1.)

          In order to further expedite those proceedings and provide more  
          consistent rulings, this bill seeks to create at least twelve  
          environmental and land use divisions within the superior courts  
          to hear cases relating to CEQA, the environment, and land use.   
          This proposed creation of an environmental and land use court is  
          similar in concept to other environmental courts and tribunals  
          (ECTs), which are becoming increasingly common around the world.  
          In fact, a 2009 report published by the Access Initative of the  
          World Resources Institute entitled Greening Justice: Creating  
          and Improving Environmental Courts and Tribunals found over 350  
          ECTs in 41 different countries.  That report further noted:

            Environmental Courts and Tribunals are a species of  
            specialized courts and tribunals. Specialized courts,  
            tribunals, and judges are not new and have existed in  
            ancient and modern times. For example, in ancient Rome the  
            Praetor Urbanus adjudicated disputes between Roman citizens  
            while the Praetor Peregrinus adjudicated disputes between  
            foreigners (in Latin peregrini) and Roman citizens.  
            Ecclesiastical courts in Europe specialized in claims  
            against or by priests. In . . . Sri Lanka, the Dutch  

                                                                      




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            colonial government established Land Raads in the 17th  
            century - courts specializing in adjudicating land disputes.  
            Modern examples of specialized courts and tribunals are  
            workmen's compensation tribunals, landlord-tenant tribunals,  
            tax courts, commercial courts, labor tribunals,  
            anti-discrimination commissions, tribunals dealing with  
            compensation for victims of crime, planning commissions, and  
            electricity tribunals. . . .  [T]he authors have identified  
            the value of establishing specialized tribunals [including]  
            efficiency and speed in the disposal of cases, harnessing  
            expertise relevant to the specialized field, reducing the  
            costs of dispute resolution, uniformity of decision-making,  
            visibility for the subject area, integrating related issues  
            and remedies, and increasing public participation and  
            confidence. (Pring & Pring, The Access Initiative, Greening  
            Justice: Creating and Improving Environmental Courts and  
            Tribunals (2009)  
             [as of Apr. 11,  
            2013], at p. xi.)


          Accordingly, this bill would require the Judicial Council to  
          direct the creation of an environmental and land use division in  
          at least twelve superior courts in order to process civil  
          proceedings brought pursuant to either CEQA or one of six  
          specified environmental and land use subject areas.  The bill  
          would additionally direct the Judicial Council to establish  
          appropriate standards and protocols for the division.

                                CHANGES TO EXISTING LAW
           
           Existing law  , the California Constitution, vests judicial power  
          of this State in the Supreme Court, courts of appeal, and  
          superior courts.  (Cal. Const., art. VI, Sec. 1.)

           Existing law  , the California Constitution, requires the  
          Legislature to divide the State into districts each containing a  
          court of appeal with one or more divisions.  (Cal. Const., art.  
          VI, Sec. 3.)  The Constitution further requires a superior court  
          of one or more judges to be in each county, and provides that in  
          each superior court there is an appellate division.  (Cal.  
          Const., art. VI, Sec. 4.) 

           Existing law  requires the judges of each superior court having  

                                                                      




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          three or more judges to choose a presiding judge, and, subject  
          to the rules of the Judicial Council, the presiding judge is  
          required to distribute the business of the court among the  
          judges, and prescribe the order of business.  (Gov. Code Sec.  
          69508.)

           This bill  would require the Judicial Council to direct the  
          creation of an environmental and land use division within two or  
          more superior courts within each of the appellate districts of  
          the state to process the following civil proceedings:
           Civil proceedings brought pursuant to the California  
            Environmental Quality Act (CEQA); and
           Civil proceedings brought in any of the following subject  
            areas:  air quality, biological resources, climate change,  
            hazards and hazardous materials, land use planning, and water  
            quality.  

           This bill  would require the Judicial Council, by rule of court,  
          to identify those statutes within the above enumerated subject  
          areas that are within the jurisdiction of the environmental and  
          land use court division.

           This bill  would permit a civil proceeding that would be subject  
          to the proposed environmental and land use court to be filed at  
          a superior court within the county in which the claim arises,  
          but require the civil proceeding to be transferred to the  
          nearest superior court within the same appellate district that  
          has established an environmental and land use division.

           This bill  would require the Judicial Council, by rule of court,  
          to establish appropriate standards and protocols for the  
          environmental and land use court division to accomplish the  
          objectives of consistency, expediency, and expertise, including  
          educational requirements and other qualifications for  
          specialized judges assigned to the division.

           This bill  would codify various findings and declarations  
          relating to: (1) the prevalence of courts specializing in  
          environmental issues; (2) the complex nature of environmental  
          issues; (3) that environmental land use court cases should be  
          decided by specialized judges trained in environmental and land  
          use law; (4) the importance of an unbiased judicial selection  
          process; and (5) that the creation of an environmental and land  
          use court can maximize judicial competence and the speed of  
          decision making.

                                                                      




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           This bill  would codify the intent of the Legislature to  
          establish an environmental and land use division to expedite  
          civil proceedings within the jurisdiction of the division, with  
          more consistent rulings and better outcomes for all parties of  
          interest.

                                        COMMENT
           
          1.   Stated need for the bill  

          According to the author:

            The expertise required and increased complexity of the  
            issues in environmental and land-use laws has put a burden  
            on the court system which has led to significant delays in  
            ruling on cases, and an increase in inconsistent rulings and  
            unpredictability. The delays and uncertainty can have a  
            detrimental impact on the viability of development projects  
            that would otherwise be welcomed by the local jurisdictions  
            by creating new jobs and economic opportunity.  
            [. . .]
            This bill would create a new specialty court division with  
            jurisdiction over [claims under the California Environmental  
            Quality Act (CEQA)] and other related land use and  
            environmental claims as defined in the bill and authorizes  
            the Judicial Council to establish appropriate standards and  
            protocols to determine which claims will be heard within the  
            division consistent with the bill and the qualifications  
            required for judges that will be assigned to this new  
            division. 

          The author further notes that "[w]hile new to California, this  
          idea has already been implemented to varying degrees in 13  
          other states, including Washington, Vermont, Colorado, Georgia  
          and Mississippi. Given California's diverse and complex  
          environment, a well-designed court system that promotes  
          efficiency and expertise would be an asset, as well."





          2.    Establishment of an environmental and land use division
           

                                                                      




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          This bill would require the Judicial Council<1> to direct the  
          creation of an environmental and land use division within two or  
          more superior courts of each of the appellate districts.  Given  
          that there are currently six appellate districts, that direction  
          would result in environmental and land use divisions in at least  
          12 of the 58 counties in this state that would hear actions  
          brought pursuant to either CEQA or one of six enumerated subject  
          areas, as identified by the Judicial Council. When a civil  
          proceeding is filed in a superior court that is within the  
          jurisdiction of the environmental and land use division, the  
          proceeding must be transferred to the nearest superior court  
          within the same appellate district that has established an  
          environmental and land use division. 

          3.    Goal of consistent rulings and better outcomes for CEQA and  
            environmental and land use cases 
           
          Pursuant to this bill, CEQA actions would be within the  
          jurisdiction of the environmental and land use division and be  
          heard by specialized judges who have met the educational  
          requirements and satisfied other qualifications to be determined  
          by the Judicial Council.  As a result, the stated goal of moving  
          those cases is to provide more consistent rulings and better  
          outcomes for all parties.  In further support of the need for  
          consistency, the author notes:

            Recent examples such as the holdings in Sunnyvale West  
            Neighborhood Ass'n v. Sunnyvale (2010) 190 Cal.App.4th 1351,  
            Madera Oversight Coalition, Inc. v. County of Madera (2011)  
            199 Cal.App.4th 48, and Neighbors for Smart Rail v.  
            Exposition Metro Line Construction Authority (2012) 205  
            Cal.App.4th 552, with their varying approaches to a proper  
            baseline for impact analyses are illustrative of the  
            unpredictable nature of this complex area of law. Another  
            example is the holding in Ballona Wetlands Land Trust v.  
            City of Los Angeles (2011) 201 Cal.App.4th 455, finding that  
            there is no requirement to analyze the impact of the  
            environment on the project itself, in contradiction to the  
            longstanding questions in CEQA Guidelines Appendix G asking  
            agencies to consider those impacts.

          In addition to CEQA actions, the environmental and land use  
          ---------------------------
          <1> The Judicial Council of California is the policymaking body  
          of the courts and regretfully opposes SB 123 for the reasons  
          stated below.

                                                                      




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          division could have jurisdiction over civil proceedings in any  
          of the following subject areas: air quality, biological  
          resources, climate change, hazards and hazardous materials, land  
          use planning, and water quality.  The Judicial Council, by rule  
          of court, would be required to identify the statutes within the  
          above areas that are within the jurisdiction of the  
          environmental and land use division.  

          From a policy standpoint, uniformity in judicial decisions  
          arguably creates confidence in the judicial system by reducing  
          the likelihood that a decision is perceived as arbitrary and,  
          potentially, reducing the number of appeals.  Despite the  
          benefits of uniformity, it should be noted that there are limits  
          to action that the Legislature may take to promote uniformity in  
          court decisions due to the separation of powers and the strong  
          policy of ensuring an independent Judicial Branch.
                                                           
          4.    Access to justice 
           
          Access to justice is a vital part of our democracy because it  
          allows aggrieved individuals to protect their rights,  
          obligations and responsibilities.  Specific to environmental  
          courts and tribunals, the above-cited report found that access  
          to justice: " . . .  strengthens freedom of information,  
          allowing civil society to press governments for information they  
          were otherwise denied[, and] allows citizens the means to ensure  
          that they participate meaningfully and are appropriately  
          included in decisionmaking on environmental matters. Access to  
          justice also levels the playing field by empowering groups that  
          may not have influence in the legislative process or may not  
          have the ear of government ministries to seek redress in the  
          courts and other forums. Finally access to justice increases the  
          public's ability to seek redress and remedy for environmental  
          harm." (Pring & Pring, The Access Initiative, Greening Justice:  
          Creating and Improving Environmental Courts and Tribunals (2009)  
           [as of  
          Apr. 11, 2013], at p. xi.)

          While the stated goal of this bill is to provide more consistent  
          rulings and better outcomes for all parties of interest, as a  
          matter of public policy, it is important to ensure that the new  
          environmental and land use divisions are set up in a way that  
          effectuates that intent. The opposition raises several concerns,  
          discussed below, about the impact of requiring the transfer of  

                                                                      




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          actions to the new division and the overall impact on the  
          court's ability to provide access to justice.

            a.   Transfer of actions to nearest division 

             As noted above, this bill would allow civil proceedings  
            subject to the new environmental and land use divisions to be  
            filed in any superior court, but, would provide that the  
            proceeding shall be transferred to the nearest superior court  
            within the same appellate district that has established an  
            environmental and land use division.  

            Staff notes that the Judicial Council has broad discretion to  
            determine which non-CEQA environmental and land use actions  
            would be required to be heard by the new division.  Given that  
            discretion, it is important that any actions identified by the  
            Judicial Council as being within the jurisdiction of the new  
            division are ones that are unlikely to impose a significant  
            burden on the plaintiff should the action be transferred to a  
            nearby county where the environmental and land use division is  
            located.  For example, if a sick homeowner discovers that a  
            nearby factory has contaminated their well and they want to  
            bring an action for relief - the policy question that arises  
            is whether it would be appropriate to move that action to the  
            proposed environmental and land use division.  One the one  
            hand, moving the case may make it impossible for the homeowner  
            to continue to pursue the action if the homeowner must travel  
            a great distance to the assigned court, but, that transfer may  
            also move the action to a court with specific expertise in the  
            issue.  The Rural Counties Representatives of California  
            (RCRC), in opposition, further asserts:

               While SB 123 may be well intended, and there may be  
               advantages to having CEQA and land use cases handled by  
               well-trained specialist judges, the provisions of SB 123  
               would require many rural local governments to litigate  
               cases in a distant urban venue, placing small rural  
               counties at a distinct disadvantage.  SB 123 would  
               increase litigation costs for those rural counties  
               located far from the appellate district superior court  
               with an environmental land use division, and may well  
               force some counties to rely more heavily on costly  
               outside counsel.

            RCRC further contends that covered cases are best dealt with  

                                                                      




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            by local judges because the "local decisions involve local  
            agency discretion and require both judicial deference and an  
            understanding of the community sensibilities underlying the  
            decisions."  Similarly, the Judicial Council, in opposition,  
            expresses concern about potentially depriving parties of the  
            ability to have their case heard locally.  

            b.   Impact on courts

             While some of the opponents do acknowledge the potential  
            benefits of creating an environmental and land use division,  
            all of the opponents express concerns about the impact of this  
            bill on California's court system.  As background, over the  
            past five years, California's judicial branch has experienced  
            ongoing budget reductions of $535 million and has diverted  
            around $1 billion in courthouse construction funds to support  
            court operations.  (Cal. Courts, Fact Check: Judicial Branch  
            Budget and Proposals for Fiscal Year 2013-2014 (Feb. 2013)  
             [as of Apr. 11, 2013].)   
            Those catastrophic budget reductions have crippled  
            California's court system by, among other things, forcing the  
            closure of courts, self-help centers and delaying access to  
            justice for a large number of Californians.  

            The California Judges Association, in opposition, states that  
            while they "understand the need for the prompt and fair  
            resolution of environmental and land use disputes, the  
            California Judges Association is very concerned about the  
            creation of any new specialty courts in the current fiscal  
            environment."  The California Chamber of Commerce, Associated  
            Builders and Contractors of California, American Council of  
            Engineering Companies, California, and the California  
            Manufacturers and Technology Association, in opposition,  
            express concern that:

               SB 123 will divert valuable resources from existing  
               courts to run this new land-use division.  A new court  
               division would require new infrastructure and overhead  
               costs that would divert resources, even if courts ended  
               up with a lighter case-load.  More importantly, though,  
               even if a funding mechanism were provided to make up for  
               this, the California Courts have sustained millions of  
               dollars in cuts over the past several years due to budget  
               shortfalls, jeopardizing the handling of cases in all  
               areas of the law that affect our members.  If new money  

                                                                      




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               is directed to the courts in 2013, we believe it should  
               first go towards restoring court funding necessary to  
               adequately run the existing system, not to establish a  
               new division within that system.

            The author, in response to the above concerns, asserts that  
            "[w]e recognize that absent a funding mechanism these policy  
            proposals would likely undermine, rather than support, the  
            stated policy goals of achieving the consistent and efficient  
            resolution of environmental and land use claims. While the  
            full details of the funding proposal are currently being  
            drafted, some general concepts can be shared at this time.   
            The funding concept is intended to provide a significant  
            dedicated revenue stream to support the new divisions' costs  
            such as the time spent by judges assigned to the division,  
            dedicated support staff, such as staff attorneys assigned to  
            provide research and administrative record review assistance,  
            and annual trainings on the latest legislation and case law  
            for assigned judges and staff."

            The Judicial Council, in opposition, further notes that they  
            have "a long history of opposition to bills that mandate the  
            creation of specialty courts, including most recently tax  
            courts and business courts. Courts need to have flexibility to  
                                                                                       manage their own calendars, especially in the current budget  
            climate when courts are struggling under severe budget  
            reductions to operate with staff layoffs, reductions in  
            services and hours of operation, and insufficient judicial  
            resources. Shifting the caseload from the 58 superior courts  
            to as few as 12 courts would provide some limited relief to  
            the non-designated courts. However, the overall caseload would  
            remain the same, and would have to be absorbed by the courts  
            with the new designated environmental and land use divisions.  
            Requiring these already overly stressed courts to dedicate  
            limited staff and judicial resources to these cases at this  
            time would further tie their hands and limit their ability to  
            manage their workload in what they believe to be the most  
            effective and efficient manner."  

            In response to the above concerns, the author notes that the  
            "current version of the bill was drafted to maximize the  
            court's management authority while ensuring the policy goals  
            of the bill are still achieved.  The requirement to create two  
            or more divisions in each appellate district is intended to  
            leave as many resource management decisions to the Judicial  

                                                                      




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            Council as feasible. The bill would mandate the creation of at  
            least two environmental and land use divisions in each of the  
            state's six appellate districts, leaving to the Judicial  
            Council decisions regarding the superior court locations,  
            whether to create more than two divisions, and how many judges  
            to assign calendar time to the division based upon their  
            determinations of overall capacity, resources and calendaring  
            needs."


            Staff notes that, if approved by this Committee, SB 123 will  
            be referred to the Senate Appropriations Committee for a full  
            and complete evaluation of the funding issues.  Furthermore,  
            as the potential funding mechanism is developed, as a matter  
            of public policy, it is important to consider the impact of  
            any new fee on the ability for Californians to access justice.  
            Although court user fees have been used to increase revenue to  
            some extent in recent years, there has been increasing concern  
            that further reliance on those fees will turn the courts into  
            a fee-for-service institution.

          5.   Judicial Council to establish appropriate standards and  
          protocols

           In addition to the creation of an environmental and land use  
          division, this bill would require the Judicial Council to  
          establish appropriate standards and protocols for the division  
          to accomplish the objectives of consistency, expediency, and  
          expertise, including educational requirements and other  
          qualifications for specialized judges assigned to the division.   
          As the bill vests considerable discretion with the Judicial  
          Council to accomplish those goals, it is not clear what  
          standards or protocols would be developed, but, as a policy  
          matter, that discretion is arguably appropriate given that the  
          Judicial Branch is a separate, co-equal branch of government.  

          It should be noted that the concept of developing expertise in  
          the area of environmental and land use laws is not unique to  
          this bill.  Under existing law, the superior courts in all  
          counties with a population of more than 200,000 are required to  
          designate one or more judges to develop expertise in CEQA and  
          related environmental and land use laws, so that those judges  
          will be available to hear, and quickly resolve, actions or  
          proceedings.  The Judicial Council, in opposition, argues that  
          given the requirement to designate a judge with land use and  

                                                                      




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          environmental expertise, and the existing calendar preference  
          for CEQA cases, it is unclear why SB 123 is needed. The author,  
          in response, contends:  

            The current court requirements are helpful to some extent,  
            but these policies do not fully address the issues addressed  
            by this bill. The two policies identified include designated  
            CEQA judges and calendar preferences.  First, the designated  
            CEQA judges are only required in about one-half of the  
            state's counties. This leaves the other half without any  
            mechanism of ensuring judges hearing these cases are trained  
            in this evolving and complex area of law. Second, calendar  
            preferences have proven insufficient given the financial  
            crisis the courts are facing, generally, and the still  
            common experience of cases taking [1.5]-2 years and  
            sometimes longer to reach a conclusion.  

            This bill does two things not addressed by the current  
            policies: (1) it consolidates the number of divisions to  
            better correlate with the actual volume of cases filed while  
            maintaining sensitivity to the need to provide access to the  
            courts, particularly in rural areas; and (2) once the  
            funding mechanism is added, provides for continuing  
            education to ensure those judges assigned to the division  
            are well-versed in this area of law and have access to some  
            additional staff resources to assist in the expeditious  
            review of these cases. The first is significant because  
            training alone, absent the opportunity to apply it on a  
            regular basis, is insufficient to develop a strong  
            expertise. A reasonable amount of consolidation will allow  
            for judges assigned to the division to develop expertise by  
            hearing cases more often than many communities typically do  
            individually. The second recognizes that the success of  
            consolidation is predicated on the new divisions having  
            sufficient training and resources so as not to overburden  
            the superior courts assigned to take on the additional  
            caseload. This bill, through forthcoming dedicated funding  
            and consolidation of cases into at least twelve divisions  
            around the state, will provide the staff resources and  
            judicial expertise, both in training and its application,  
            necessary to help facilitate fast and consistent resolution  
            of claims.
           
          6.   Delayed enactment date
           

                                                                      




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          Considering the logistical steps that need to occur in order for  
          an environmental and land use division to be setup in at least  
          12 superior courts, it is essential that this bill include a  
          delayed-enactment date to allow some time for those steps to  
          occur.  Accordingly, at a minimum, a six-month delayed enactment  
          date is suggested to allow for all the necessary steps to occur.  
           The author should continue working with interested parties to  
          determine whether more time is necessary to get the new  
          divisions up and running (with the required training and  
          procedures in place).

             Suggested amendment:  

            On page 4, line 6, after the period insert:

            69545.  This article shall become operative on July 1, 2014.

          7.   Technical amendment  

          The author offers the following technical amendment to correct a  
          drafting error in the findings and declarations:

             Technical amendment  :

            On page 3, lines 2 through 3, strike "each superior" and  
            insert:

            the superior courts selected by the Judicial Council


           Support  :  American Planning Association, California Chapter;  
          East Bay Municipal Utility District; Enhanced CEQA Action Team

           Opposition  :  American Council of Engineering Companies,  
          California; Associated Builders and Contractors of California;  
          California Chamber of Commerce; California Judges Association;  
          California Manufacturers and Technology Association; Judicial  
          Council of California; Rural County Representatives of  
          California

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  : AB 515 (Dickinson, 2013) would  

                                                                      




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          establish a CEQA compliance division of the superior court in a  
          county in which the Attorney General maintains an office and  
          would vest the division with original jurisdiction over actions  
          of proceedings brought pursuant to CEQA and joined matters  
          related to land use and environmental laws.

           Prior Legislation  :  

          AB 900 (Buchanan and Gordon, Chapter 354, Statutes of 2011),  
          enacted the Jobs and Economic Improvement Through Environmental  
          Leadership Act of 2011, and established specified judicial  
          review procedures for the judicial review of the environmental  
          impact report and approvals granted for a leadership project  
          related to the development of a residential, retail, commercial,  
          sports, cultural, entertainment, or recreational use project, or  
          clean renewable energy or clean energy manufacturing project.

          SB 292 (Padilla, Chapter 353, Statutes of 2011), established  
          expedited judicial review procedures and required implementation  
          of specified traffic and air quality mitigation measures under  
          CEQA for the proposed downtown Los Angeles football stadium and  
          convention center project.

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