BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 944|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 944
          Author:   Committee on Transportation and Housing  
          Amended:  8/18/16  
          Vote:     27 

           SENATE TRANS. & HOUSING COMMITTEE:  10-0, 4/5/16
           AYES:  Beall, Cannella, Allen, Bates, Galgiani, Leyva, McGuire,  
            Mendoza, Roth, Wieckowski
           NO VOTE RECORDED:  Gaines

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/2/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SENATE FLOOR:  37-0, 5/12/16
           AYES:  Allen, Anderson, Bates, Beall, Block, Cannella, De León,  
            Fuller, Gaines, Galgiani, Glazer, Hall, Hancock, Hernandez,  
            Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva,  
            McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell,  
            Nguyen, Nielsen, Pan, Pavley, Roth, Stone, Vidak, Wieckowski,  
            Wolk
           NO VOTE RECORDED:  Berryhill, Liu, Runner

          ASSEMBLY FLOOR:  79-0, 8/22/16 - See last page for vote

           SUBJECT:   Housing omnibus


          SOURCE:    Author


          DIGEST:  This bill makes non-controversial changes to sections  
          of law relating to housing.


          Assembly Amendments make technical and non-controversial  








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          changes.
          
          ANALYSIS:   This bill makes the following non-controversial  
          changes to sections of law relating to housing. The proponent of  
          each provision is noted in brackets.



            1)  Clarification of non-profit role in mutual self-help  
              housing programs (Section 1).  Ten local non-profit  
              community development organizations operate mutual self-help  
              homeownership programs in rural California.  These are  
              programs that assist groups of low-income families who work  
              together to build their own homes.  It is possible to  
              interpret the current code definition of a contractor to  
              include the work done by the self-help program operators,  
              though the State Contractor's License Board has said that  
              the programs would be considered exempt.  This bill  
              clarifies that non-profits that specifically operate this  
              mutual self-help program are not acting as contractors.  
              [California Coalition for Rural Housing]

            1)  Mobile home disposal: Minor program changes (Sections 2, 3  
              and 19).  AB 999 (Daly, Chapter 376, Statutes of 2015)  
              passed last year with no controversy.  However, in the  
              implementation of the new mandate, the Department of Housing  
              and Community Development (HCD) and interested parties are  
              finding that the 10-day period given in the statute (Civil  
              Code Section 798.56(e)) is not enough time for management to  
              make a decision on whether to dispose of an abandoned mobile  
              home.  As a result, this new program is not being used.   
              Additionally, HCD realized after AB 999 was passed that it  
              needed regulations to create the forms required by the new  
              law.  This bill changes the time in which management must  
              file a notice of disposal with HCD from 10 days to 30 days  
              after the date of sale. The bill also gives HCD authority to  
              draft guidelines for new procedures and forms until final  
              regulations may be formally adopted.  [Western Manufactured  
              Housing Communities Association]

            2)  Definition of "electric vehicle charging station" and  
              "charging stations": Correct code reference (Section 4).   








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              Legislation passed in 2014 regulating lease terms on  
              electric vehicle charging stations included inconsistent  
              definitions of "electric vehicle charging station" and  
              "charging station."  Civil Code Section 1947.6(c) references  
              the definition in the California Electrical Code, while  
              Civil Code Section 1952.7(c)(1) references the definition in  
              the National Electrical Code.  The California Electrical  
              Code is based on the model National Electrical Code, but  
              contains amendments made by state agencies with statutory  
              authority.  These amendments were not originally included in  
              the national model code.  This bill corrects the discrepancy  
              by changing the definition in Section 1952.7 of the Civil  
              Code to refer to the California Electrical Code.   
              [Department of General Services]

            3)  Transitional Housing Misconduct Act: Move to Civil Code  
              (Sections 5 and 24).  The Transitional Housing Misconduct  
              Act is a special law that allows transitional housing  
              operators to remove problematic residents with a simple  
              injunction action, rather than going through the entire  
              landlord-tenant eviction law.  It also allows for interim  
              options, with court enforcement, rather than only eviction.   
              Unfortunately, because it is located in the middle of HCD's  
              finance program laws, it is difficult to find and often  
              isn't even understood by courts and housing providers.  This  
              bill moves this law to the Civil Code that already deals  
              with landlord-tenant statutes, where the courts and housing  
              providers are more likely to look for such a law. [Senate  
              Transportation and Housing Committee]

            4)  Common interest developments (CIDs): Resolve conflicts  
              between code sections relating to declarations (Section 6).   
              There are conflicts between Civil Code Sections 4270 and  
              4225, 4230, and 4235 relating to amending declarations.   
              Section 4270 already makes an exception for an alternate  
              amendment process described in Section 4275.  This bill  
              resolves the conflicts by adding exceptions for the  
              alternate processes in Sections 4225, 4230, and 4235 to the  
              existing exception in Section 4270.  [Community Associations  
              Institute-California Legislative Action Committee  
              (CAI-CLAC)]
           








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            5)  CIDs: Renumber a Civil Code section (Section 7).  The  
              California Law Revision Commission (CLRC) revised the  
              numbering in the Davis-Stirling Act with the intent to avoid  
              decimals.  Accordingly, the CLRC left ample room between  
              existing whole-numbered sections.  Civil Code Section 4750  
              concerns personal agriculture, while Civil Code Section  
              4750.10 addresses clotheslines. Since clotheslines are not  
              particularly related to personal agriculture, this bill  
              replaces the statute number containing a decimal with a  
              whole number.  [CAI-CLAC]

            6)  CIDs: Correct a Civil Code section reference (Section 8).   
              Civil Code Section 5570(b)(2) defines the term "major  
              component" to have the same meaning as specified in Civil  
              Code Section 55530.  There is no Civil Code Section 55530.  
              The reference is intended to be to Civil Code Section 5550,  
              which does define the term. This bill corrects the  
              inaccurate Civil Code section reference.  [CAI-CLAC]
           
            7)  Housing discrimination: Update federal law citation  
              (Section 9).  In 1996, an amendment to Civil Code Section  
              798.76 was made to reflect amendments to a federal law  
              referenced therein, the Federal Fair Housing Act.  A  
              corresponding change was not made in Government Code Section  
              12955.9, which cites the same federal law.  This bill  
              corrects the name of the federal law to reflect amendments  
              thereto. [Western Manufactured Housing Communities  
              Association]



            2)  Eliminate conflicting methodology for HCD determination of  
              regional housing need (Section 10).  The second and third  
              sentences of Section 65584.01(b) below reference two  
              different criteria that can result in conflicting  
              calculations for whether HCD must accept the population  
              forecast of a council of government (COG) in place of the  
              population forecast of Department of Finance (DOF).  Both  
              criteria apply whether the COG forecast is within a range of  
              3% of DOF's determination.  The first criterion compares COG  
              and DOF "total" population.  The second criterion compares  
              change and difference in population "growth" between COG and  








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              DOF total population.  For example, SCAG, during the current  
              5th 2013-2023 housing cycle, only met the first criterion,  
              which the HCD allowed and prefers.  In late 2015, HCD and  
              local government and housing advocate members of the Housing  
              Element Advisory Group agreed that the second criterion is  
              redundant.  This bill removes the term "growth," used twice  
              in the third sentence, to resolve the issue.  [Senate  
              Transportation and Housing Committee]

            8)  State notice law protections: Clarify reference (Section  
              11).  The state notice law (Government Code Section  
              65863.10) applies to a variety of publicly supported  
              affordable multifamily housing types.  SB 1328 (Torlakson,  
              Chapter 110, Statutes of 2004) extended state notice  
              protections to tenants of many types of affordable housing  
              not previously covered.  Among them were properties with  
              expiring rent restrictions that were financed under  
              tax-exempt mortgage revenue bond programs in Internal  
              Revenue Code Section 142(d) and Government Code Section  
              65863.10(a)(3)(F).  Prior to 1986, however, the mortgage  
              revenue bond authority in Internal Revenue Code Section  
              142(d) was lodged in a different code section.   
              Consequently, the specific reference to Section 142  
              potentially denies basic state notice protections to tenants  
              in properties that were financed with mortgage revenue bonds  
              prior to 1986.  This bill clarifies that these protections  
              apply to properties financed by the program in Internal  
              Revenue Code Section 142 as well as corresponding sections  
              in the prior code. [Housing Advocates]

            9)  Referencing International Codes (Section 12).  Subdivision  
              (a) of California Health and Safety Code Section 17913  
              refers to "the uniform codes" as the model codes in  
              California.  However, there are other model codes related to  
              residential construction in California (International Codes  
              published by the International Code Council) that need to be  
              referenced.  The amendment to subdivision (a) updates the  
              reference to the codes currently adopted in California.   
              [Senate Transportation and Housing Committee]











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            3)  Remove outdated building code requirements (Section 13).   
              California Health and Safety Code Section 17921.3 contains  
              requirements for water closets and urinals.  This section,  
              by its terms, remains operative only until January 1, 2014,  
              or until the date on which the California Building Standards  
              Commission (CBSC) included standards in the California  
              Building Standards Code that conform to this section,  
              whichever is later.  Mandatory provisions for  
              water-efficient plumbing fixtures and plumbing fittings were  
              adopted in the 2013 California Green Building Code  
              (CALGreen) and in the 2013 California Plumbing Code.  This  
              bill repeals Section 17921.3 because there is no need for it  
              to remain operative.  [Senate Transportation and Housing  
              Committee]





            4)  Remove outdated provisions (Section 14).  California  
              Health and Safety Code Section 17921.9 contains provisions  
              for CPVC plastic piping and safe work practices.  This  
              section became inoperative on January 1, 1998, by its own  
              terms.  This bill removes Section 17921.9 because there is  
              no need for it to remain in the code.  [Senate  
              Transportation and Housing Committee]





            5)  Replace outdated code references (Section 15).  California  
              Health and Safety Code Section 17922 contains provisions  
              related to the California Building Standards and other rules  
              and regulations adopted by HCD, and refers to "the uniform  
              model codes."  However, some of these uniform model codes  
              are no longer adopted in California.  This bill updates the  
              language to refer to the current model codes.  [Senate  
              Transportation and Housing Committee]











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            6)  Deletes a citation to an outdated building code reference  
              (Section 16).  California Health and Safety Code Section  
              17922.3 contains provisions governing moved residential  
              structures.  The language in this section refers to the 1991  
              Uniform Building Code (UBC) for the requirements for  
              existing buildings, including moved buildings.  The UBC is  
              no longer a model code in California; the requirements for  
              existing buildings in California are now in the California  
              Existing Building Code (2015 International Existing Building  

            Code is the model code).  This bill deletes that citation  
              because there is no need for a reference to a code not  
              adopted in California.  [Senate Transportation and Housing  
              Committee]





            7)  Deletes a citation to an outdated building code reference  
              (Section 17).  California Health and Safety Code Section  
              17958.1 refers to the "Uniform Building Code" for the  
              meaning of the term "efficiency unit."  However, the Uniform  
              Building Code is no longer a model code in California; the  
              definition of "efficiency unit" and the section containing  
              the requirements for efficiency units are located in the  
              California Building Code.  This proposal deletes that  
              citation because there is no need for a reference to a  code  
              not adopted in California.  [Senate Transportation and  
              Housing Committee]





            8)  Corrects a spelling error (Section 18).  California Health  
              and Safety Code Section 17959.1 (a) requires cities or  
              counties to administratively approve applications to install  
              solar energy systems.  This bill corrects a spelling error  
              in that section.  [Senate Transportation and Housing  








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              Committee]

            10) CBSC submittals to the Office of Administrative Law (OAL)  
              (Section 20).  Government Code Section 11356 exempts  
              building standard regulations, including the Initial  
              Statement of Reasons, from OAL review and approval.  When  
              the CBSC approves an Initial Statement of Reasons and a  
              Notice of Proposed Action (Notice), only the Notice is  
              published by OAL pursuant to Government Code Section  
              11344.1.  However, Health and Safety Code Section 18935(a)  
              requires CBSC to submit both the Initial Statement of  
              Reasons and the Notice to OAL.  This bill eliminates an  
              unnecessary requirement to achieve consistency with existing  
              law.  [Department of General Services]



            9)  Replace outdated code references (Section 21).  California  
              Health and Safety Code Section 19990 contains provisions  
              related to the California Building Standards and other rules  
              and regulations adopted by HCD, and refers to specific  
              "uniform model codes."  However, some of these uniform model  
              codes are no longer adopted in California.  This bill  
              updates the language and refers to the model codes currently  
              adopted in California.  [Senate Transportation and Housing  
              Committee]

            11) Tribally designated housing entities (Sections 22 and 23).  
               State Health and Safety Code Section 50074 describes the  
              types of housing sponsors that are eligible to participate  
              in housing programs administered by HCD.  The federal Native  
              American Housing Assistance Self Determination Act of 1996  
              establishes a specific category of housing sponsor, the  
              "tribally designated housing entity," that is neither  
              enumerated in Section 50074 or defined in existing language.  
               As such, tribes have never participated in HCD's programs.  
              This bill defines "tribally designated housing entity" by  
              reference to federal code and specifies that tribally  
              designated housing entities are housing sponsors eligible  
              for assistance from HCD. [Northern Circle Indian Housing  
              Authority]
           








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            12) Mobilehome Park Rehabilitation and Resident Ownership  
              Program (MPRROP): Clarify intent (Section 25).  AB 225 (Chau  
              and Nestande, Chapter 493, Statutes of 2014) gave HCD  
              greater flexibility to administer the MPRROP.  The bill  
              allowed recipients of program funds (e.g., resident  
              organizations, local public entities, nonprofit sponsors) to  
              make loans to lower-income mobilehome owners to assist them  
              in repairing their mobilehomes.  The bill was intended to  
              allow HCD to operate this program in a manner similar to the  
              CalHOME program, such as by providing loans to residents to  
              replace their mobilehomes.  This bill further clarifies the  
              intent of legislation.  [Assembly Housing and Community  
              Development Committee]

            13) Emergency Homeless Assistance Program (EHAP) Fund Sweep  
              (Section 26).  There is approximately $1.1 million in  
              disencumbered funds from the EHAP - Capital Development  
              (EHAP-CD) program in the EHAP Fund.  In 2013, AB 873 (Chau,  
              Chapter 488) provided for a one-time sweep of bond funds  
              from EHAP-CD to Multi-family Housing Program - Supportive  
              Housing (MHP-SH).  HCD transferred $9,942,459 to MHP-SH on  
              June 9, 2015.  Since that time, there has been an additional  
              disencumbrance of $1.1 million.  This bill sweeps any unused  
              Proposition 46 or Proposition 1C funds from the EHAP Fund to  
              be used for MHP-SH.  [Assembly Housing and Community  
              Development Committee]   

          Background

          According to the Legislative Analyst's Office, the cost of  
          producing a bill in 2001-2002 was $17,890.  By combining  
          multiple matters into one bill, the Legislature can make minor  
          changes to law in the most cost-effective manner.

          Proposals included in this housing omnibus bill must abide by  
          the Senate Transportation and Housing Committee policy on  
          omnibus committee bills.  The proponent of an item submits  
          proposed language and provides background materials to the  
          committee.  Committee staff provides a summary of the items and  
          the proposed statutory changes to all majority and minority  
          consultants in both the Senate and Assembly, as well as all  
          known or presumed interested parties.  If an item encounters any  








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          opposition and the proponent cannot work out a solution with the  
          opposition, the item is omitted from or amended out of the bill.  
           Proposals in the bill must reflect a consensus and be without  
          opposition from legislative members, agencies, and other  
          stakeholders.

           Comments
           
          The purpose of omnibus bills is to combine technical and  
          non-controversial changes to various committee-related statutes  
          into one bill.  This allows the Legislature to make multiple  
          minor changes to statutes in a cost-effective manner.  The  
          Senate Committee on Transportation and Housing insists that its  
          housing omnibus bill be a consensus measure. If there is no  
          consensus on a particular item, it cannot be included. There is  
          no known opposition to any item in this bill.  

          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No

          According to the Assembly Appropriations Committee, this bill  
          may incur unknown cost pressures related to the expansion of  
          allowable uses for MPRROP funds (Section 25).  Authorizing loans  
          for replacement of a low-income homeowner's mobilehome is not  
          likely to have a significant impact on available funding,  
          however.  Additionally, revising MPRROP regulations to provide  
          for mobilehome replacement loans may result in minor costs to  
          HCD. 


          SUPPORT:   (Verified8/22/16)


          California Coalition for Rural Housing
          Mammoth Lakes Housing
          Peoples' Self-Help Housing
          Redwood Valley Little River Band of Pomo Indians
          United Native Housing Development Corporation


          OPPOSITION:   (Verified8/22/16)









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          None received



          ASSEMBLY FLOOR:  79-0, 8/22/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth  
            Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,  
            Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,  
            Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,  
            Mayes, McCarty, Medina, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon  
          NO VOTE RECORDED:  Melendez  



          Prepared by:Sarah Carvill / T. & H. / (916) 651-4121
          8/22/16 22:15:44


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