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 SB 1545 Page 2 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 SB 1545 Page 3 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 SB 1545 Page 4 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 SB 1545 Page 5 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 SB 1545 Page 6 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 SB 1545 Page 7 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 SB 1545 Page 8 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