BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1545
                                                                  Page  1

          Date of Hearing:  July 5, 2000

              ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT 
                                Alan Lowenthal, Chair
                     SB 1545 (Costa) - As Amended:  June 29, 2000

           SENATE VOTE  :   38-0
           
          SUBJECT  :   Employee housing

           SUMMARY  :   Imposes specified planning and zoning requirements  
          with regard to employee housing on local jurisdictions.   
          Specifically,  this bill  :   

          1)Establishes processing requirements that give local building  
            or health departments 30 calendar days to approve or deny a  
            complete permit application to rehabilitate employee housing.

          2)Establishes processing requirements that require the permit  
            time to be shorter if required by the Permit Streamlining Act.

          3)Establishes processing requirements that require a city or  
            county to deny a permit request on procedural grounds within  
            10 days.

          4)Requires permit denials issued on procedural grounds to  
            itemize the procedural defects.

          5)Allows denial of an application or permit on substantive  
            grounds if the denial includes an itemization of all  
            substantive defects.

          6)Approves permit requests automatically if a local building or  
            health department has not approved or denied the application  
            or permit request after 30 calendar days if the complete plans  
            for the project are certified by a licensed architect or  
            engineer to be consistent with all health and safety  
            requirements.

          7)Allows the applicant to begin rehabilitation of employee  
            housing if the work is consistent with the application or  
            permit that is issued.

          8)Requires state or local agencies to accept the ensuing  
            construction or rehabilitation project as if the local  








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            building or health department had approved it.

          9)Eliminates the requirement that a complainant wait five days  
            for an enforcement agency to bring civil action in cases where  
            an administrative complaint has been filed against the  
            operator of employee housing.

          10)Reduces the number of days that a local enforcement agency  
            has to file civil action against the operator of employee  
            housing for violation of the Employee Housing Act before the  
            complainant can file a civil action from 34 to 30 days.

           EXISTING LAW  

          1)Provides the Employee Housing Act that governs all aspects of  
            the construction, operation, and regulation of a variety of  
            types of employee housing including labor camps (Health and  
            Safety Code Section 17000 et seq.).

          2)Defines employee housing according to a variety of factors  
            (Health and Safety Code Section 17008 et seq.).

          3)States that employee housing means the same as "labor camp"  
            (Health and Safety Code Section 17008 (d)). 

          4)Reserves local land use zone requirements, local fire zones,  
            property line, source of water supply and method of sewage  
            disposal requirements to local jurisdictions with some  
            exceptions (Health and Safety Code Section 17021).

          5)Provides the Permit Streamlining Act (Government Code Section  
            65920 et seq.).

          6)Requires each state and local agency to compile one or more  
            lists that specify in detail the information that will be  
            required from any applicant for a development project  
            (Government Code Section 65940)

          7)Requires state and local agencies to indicate the criteria  
            that the agency will apply in order to determine the  
            completeness of any application for a development project  
            (Government Code Section 65941).

          8)Deems an application for a development project complete if the  
            agency does not make a written determination within 30  








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            calendar days of receiving the application (Government Code  
            Section 65943(a)).

          9)Requires an agency to determine an application is incomplete  
            within 30 calendar days after receiving it and to specify  
            which parts are incomplete (Government Code Section 65943  
            (b)).

          10)Prescribes time periods for local agencies to approve or  
            disapprove development permits.  The time periods vary  
            according to a variety of conditions such as certification of  
            environmental impact reports and determination of a project's  
            exemption from California Environmental Quality Act  
            (Government Code Section 65950).  

          11)Permits a resident of employee housing to submit an  
            administrative complaint with the local enforcement agency  
            against the owner/operator of employee housing for violation  
            of the Employee Housing Act (Health and Safety Code Section  
            17055).

          12)Provides that if a local enforcement agency does not file a  
            civil action against the owner/operator of employee housing  
            within 34 days after receiving the complaint, or within 34  
            days after the administrative complaint is denied, and the  
            agency determines that the conditions alleged in the complaint  
            continue to exist, the complainant may file a civil action.

          13)Provides that if the court finds that residents of the  
            employee housing were in imminent peril due to violations of  
            the serious Employee Housing Act, the complainant does not  
            have to wait five days for the local enforcement agency to  
            bring civil action and may do so after five days and be  
            entitled to all rights and remedies.

           FISCAL EFFECT  :   Unknown

           COMMENTS :   

          Since the Labor Camp Act of 1913, California has enforced  
          minimum housing standards to protect the health and safety of  
          agricultural workers.  Enforcement of labor camp codes and  
          standards remains largely in local hands, with 13 counties  
          having assumed responsibility for inspection of labor camps.  In  
          recent years, labor contractors operate the camps rather than  








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          growers.  Many growers have gotten out of the housing business  
          altogether.  In 1955, growers registered more than 9,000 labor  
          camps in the state, today, it is estimated that there are 800  
          camps housing approximately 20,000 workers.

          It is estimated that there are between 650,000 and 850,000  
          farmworkers and their families in California. It is also  
          estimated that more than 60% of farmworkers working in  
          California have a spouse and children living with them.  The  
          total farmworker population in California (workers and  
          non-working family members) is nearly 1.3 million. 

          According to the Statewide Housing Plan, the housing that  
          farmworkers find in the private market tends to be of poor  
          quality, too small, or both. The plan asserts that farmworker  
          housing problems result from low incomes, large household sizes  
          relative to available housing stock, and their mobility between  
          the state's agricultural regions during peak seasons.  The  
          Statewide Housing Plan also finds that agricultural workers tend  
          to live in rural areas which have the highest proportions of  
          substandard housing in the state, and are chronically unable to  
          find adequate housing.

          Arguments in support:
           
          The California Housing Law Project (CHLP) has put together a  
          coalition made up of the following organizations: Agricultural  
          Council of California, Bank of America, California Catholic  
          Conference, California Church Impact, California Labor  
          Federation, California Rural Legal Assistance Foundation,  
          Friends Committee on Legislation, Jericho, Lutheran Office of  
          Public Policy, Manufactured Housing Institute, Western Center on  
          Law and Poverty, and the Wine Institute.  The CHLP is the  
          sponsor of SB 1545.

          According to the sponsor, the bill makes modest changes to the  
          Employee Housing Act to help address the problem of substandard  
          living conditions in labor camps.  The bill provides that  
          permits to construct and upgrade farmworker housing must be  
          acted upon by local governments within 30 days or are otherwise  
          deemed approved.  The CHLP says that this provision addresses  
          the issue of localities refusing to act on permits needed to  
          bring substandard employee housing up to code.  The CHLP says  
          that the housing typically is rented to farmworkers illegally  
          for years and the city or county ignores its substandard  








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          condition and when the operator agrees to obtain a license and  
          bring the housing up to code, the city or county refuses to act  
          on the permit.  The sponsor believes that in these cases, the  
          city or county does not want to formally approve the use of the  
          property as farmworker housing.

          The sponsor cites incidents in the cities of Firebaugh and  
          Coachella as situations in which cities did not want to approve  
          farmworker housing.  The  sponsor says that discriminatory code  
          enforcement has been a problem in the Riverside County area for  
          the last three years where the county recently settled a  
          discrimination case with the federal Department of Housing and  
          Urban Development for $21 million. 

          In addition to streamlining the permit approval process for  
          farmworker housing, SB1545 shortens the timeline for prior  
          notice to local enforcement agencies before a complainant may  
          pursue civil action for substandard labor camp conditions.  CHLP  
          says that at this time enforcement agencies have no process for  
          responding to these notices and they have become an unnecessary  
          impediment to bringing substandard camps up to code.

           Arguments in opposition:
           
          The California Building Officials (CALBO) oppose SB 1545.  CALBO  
          states that the bill creates the potential for employee housing  
          to be built or rehabilitated that does not meet the necessary  
          health and safety codes, and may endanger the health and safety  
          of future residents.

          CALBO says that tightening the timeframe for approving or  
          denying permit applications and stipulating additional  
          requirements the building department must follow will make it  
          harder for these departments to meet the demands in the  
          specified timeframe.

          CALBO also opposes the provision of the bill that would allow an  
          application or permit request that is not approved or denied by  
          the local jurisdiction within the new timeframes described above  
          to be deemed approved if the complete plans are signed by a  
          licensed architect or engineer.

          The League of California Cities and the California Association  
          of Counties (CSAC) oppose SB 1545.  According to these groups,  
          this bill overrides local building permit and inspection  








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          processes for repairs and construction of employee housing as  
          well as override a city or county health department's review of  
          water and waste disposal systems, and replace them with a state  
          imposed process.

          The League says that it has requested specific information from  
          HCD, the source of the language (not a sponsor of the bill) to  
          determine the reasons for this provision of the bill.  The  
          League says that it has been difficult to obtain specific  
          information from the department regarding cities that have  
          delayed permits for construction or repair of farmworker  
          housing.  According to the League, the only city HCD has  
          identified for delaying permits to upgrade employee housing has  
          been the City of Coachella.

          The League and CSAC have requested that if HCD has experienced  
          some problems with a local building or health department  
          approval process for employee housing, that HCD provide the  
          local jurisdiction with an opportunity to respond to the problem  
          at the local level.
           
            
           Staff Comments:
           
           Substantially amended:

           SB 1545 has been substantially amended.  The provisions of the  
          bill that approve permits for rehabilitating employee housing  
          were not in the bill when it passed the Senate 38-0.

           HUD's settlement with Riverside County:
           
           On May 23, 2000 Riverside County agreed to spend $16.1 million  
          on community projects and low-income housing, and to pay  
          $787,000 to the 24 families that filed the complaints as part of  
          a settlement with the federal Department of Housing and Urban  
          Development.  HUD investigated the complaints of farmworker  
          families that claimed that county inspectors applied  
          differential inspection and enforcement policies against labor  
          camps operated by Latinos compared with policies applied against  
          parks operated by non-Latinos.  

          HUD's investigators examined the county's records related to  
          nearly 80 camps operating in the unincorporated areas of  
          Thermal, Oasis, and Mecca.  The camps usually consist of  








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          manufactured homes owned by families that rent from the camp  
          operator.  HUD found the county had a pattern of refusing to  
          approve permit applications for labor camps operated by Latinos.  
          In some cases, county staff discouraged Latino camp operators  
          from applying for permit while permit applications from  
          non-Latino operators of labor camps were approved.

          HUD says that substandard health and safety conditions (i.e.,  
          dangerous electrical wiring and raw sewage leaks) existed in all  
          the camps, but the county limited its enforcement activities to  
          camps owned by Latinos and other camps were allowed to continue  
          to operate despite the presence of similar problems.  HUD found  
          that the county building officials unequally applied their  
          enforcement authority by evicting people from camps operated by  
          Latinos while allowing others to continue.  According to the  
          federal government, this was a case of discrimination based upon  
          the race of the camp operator, not the occupation of the  
          workers.

          Given the facts of the Riverside case, the committee may wish to  
          consider whether there is a true nexus between this bill and  
          this case. 
           
          Statewide significance:

           The sponsor has cited the case in Riverside and has alluded to  
          problems with the City of Firebaugh refusing to act on permit  
          applications for farmworker housing.  While HCD has provided the  
          language, it has not supplied the committee with adequate data  
          to determine if this problem occurs statewide.  The committee  
          may wish to consider whether there is sufficient evidence of a  
          statewide problem to remove local control over use zone  
          requirements.  
           
           California Environmental Quality Act:
            
           The bill says that in spite of any other provision of law  
          related to a building permit, grading permit or other approval  
          from a city or county building department for the rehabilitation  
          of real property improvements that are or will be employee  
          housing, or from a city or county health department for the  
          operation, construction, or repair of a water system or waste  
          disposal system servicing employee housing, the 30 day  
          processing requirements shall apply.  This provision appears to  
          circumvent California Environmental Quality Act (CEQA) approval  








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          requirements with regard to building permits.  The committee may  
          wish to consider whether this provision should be more narrowly  
          written in order to avoid the appearance of circumventing CEQA.
           
          The Permit Streamlining Act:

           Existing law provides the Permit Streamlining Act, which   
          ensures clear understanding of the specific requirements which  
          must be met in connection with the approval of development  
          projects and expedites decisions on such projects.   Should the  
          state further restrict the ability of local permit agencies to  
          perform their duties?  

          REGISTERED SUPPORT / OPPOSITION  :

           Support  

          California Housing Law Project
           Jericho
           
          Opposition  

          California Building Officials
          California State Association of Counties
          League of California Cities


           Analysis Prepared by  :    Chereesse Thymes / H. & C.D. /  
          (916)319-2085