BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:  June 22, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 734  
          (Galgiani) - As Amended June 21, 2016


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          Urgency:  Yes State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill extends the expedited California Environmental Quality  
          Act (CEQA) judicial review procedures established by the Jobs  
          and Economic Improvement Through Environmental Leadership Act  
          (AB 900, Chapter 345, Statutes of 2011) by two years.   
          Specifically, this bill: 


          1)Extends the operation of AB 900 by two years, so that the  
            Governor must certify a project prior to January 1, 2018 and  
            the project must be approved prior to January 1, 2019, when  
            the bill sunsets.








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          2)Requires contractors and subcontractors to pay at least the  
            general prevailing rate of per diem wages to all construction  
            workers employed in the execution of the project.

          3)Allows the Labor Commissioner to enforce prevailing wage  
            requirements through the issuance of a civil wage and penalty  
            assessment unless all contractors and subcontractors  
            performing work on the project are subject to a project labor  
            agreement, as specified.

          4)Requires multifamily residential projects to provide vehicle  
            parking spaces priced, rented or purchased separately, unless  
            the housing units are subject to affordability restrictions.


          FISCAL EFFECT:


          Absorbable state costs.


          COMMENTS:


          1)Purpose.  According to the author, litigation for large  
            projects is currently taking up to three years, not including  
            appeals.  The author further states that the associated jobs  
            and housing are not being created or are being delayed.  By  
            extending the expedited judicial review procedures, this bill  
            will help large projects avoid significant delays.


          2)Background.  In 2011, AB 900 (Buchanan) and SB 292 (Padilla)  
            established expedited CEQA judicial review procedures for a  
            limited number of projects.  AB 900 applied to large-scale  
            projects meeting certain environmental standards and providing  
            significant jobs and investment.  SB 292 applied to a proposed  








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            downtown Los Angeles football stadium and convention center  
            project achieving specified traffic and air quality  
            mitigations.  


            For eligible projects, both bills designated the Court of  
            Appeal with original jurisdiction and required the Court to  
            render a decision on any lawsuit within 175 days.  This  
            compressed schedule was intended to reduce the existing  
            judicial review timeline by 100 days or more.  


            The provision in AB 900 granting original jurisdiction to the  
            Court of Appeal was invalidated in 2013 by a decision in  
            Alameda Superior Court in Planning and Conservation League v.  
            State of California.  The stadium project subject to SB 292  
            has not proceeded.  


            To date, six projects have been certified under AB 900.  Only  
            one, the proposed Golden State Warriors arena and related  
            development at Mission Bay in San Francisco, has been  
            challenged under CEQA.  The case, Mission Bay Alliance et al.  
            v Office of Community Investment and Infrastructure, was filed  
            March 11, 2016.  A hearing is scheduled June 17, 2016,   in  
            San Francisco Superior Court.


            In 2013, SB 743 (Steinberg) established special CEQA  
            procedures modeled after SB 292 for the Sacramento Kings arena  
            project.  Like SB 292, SB 743 applied to a single project and  
            included specified traffic and air quality mitigations.  CEQA  
            lawsuits were filed against the Kings arena, and the lawsuits,  
            including appeals, were resolved 267 days after certification  
            of the record. 


          3)Potential Projects. Although this bill provides a blanket  
            extension of AB 900 and is not specific to any particular  








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            project, proponents have identified four projects that would  
            likely apply for AB 900 certification if the bill is enacted:


             a)   6701 Sunset/Crossroads in Hollywood - Nine new mixed-use  
               buildings including up to 308 hotel rooms and 950  
               residential units, 84 of which will be affordable to  
               low-income households (to replace 84 rent-controlled units  
               the project will demolish).


             b)   Yucca-Argyle Project in Hollywood - Mixed-use project  
               with hotel, residential, and commercial uses, including 260  
               hotel rooms and 191 residential units, 39 of which will be  
               affordable to low-income households.


             c)   Barlow Hospital Project in Echo Park - Hospital  
               replacement and residential development on a 25-acre site  
               near Dodgers Stadium, including 400 new single-family  
               homes.


             d)   Hollywood Central Park - A 38-acre regional street level  
               park created by capping US 101 between Hollywood and Santa  
               Monica Boulevards.


            


          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081














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