BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: sb 575
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  Steinberg
                                                         VERSION: 4/15/09
          Analysis by: Mark Stivers                      FISCAL:  yes
          Hearing date: April 28, 2009








          SUBJECT:

          SB 375 and SB 732 cleanup

          DESCRIPTION:

          This bill cleans up three provisions of last year's SB 375: 1)  
          the exemption for transportation sales tax projects; 2) the  
          rezoning requirement under housing element law; and, 3) housing  
          elements due dates generally and the due date in the San Diego  
          region specifically.  The bill also clarifies a provision of  
          last year's SB 732 regarding the open meeting requirements  
          applicable to the Strategic Growth Council.

          ANALYSIS:

          Exemption for transportation sales tax projects

          SB 375 (Steinberg), Chapter 728, Statutes of 2008, required the  
          Air Resources Board (ARB), by September 30, 2010, to provide  
          each region that has a metropolitan planning organization (MPO)  
          with a greenhouse gas emission reduction target for the  
          automobile and light truck sector for 2020 and 2035,  
          respectively.  Each MPO, in turn, is required to include within  
          its regional transportation plan (RTP) a sustainable communities  
          strategy (SCS) designed to achieve the ARB targets for  
          greenhouse gas emission reduction.  The SCS and all other  
          elements of the RTP, including the programming of funding to  
          transportation projects, must be internally consistent.  SB 375  
          provides that the internal consistency requirement does not  
          affect any transportation project programmed for funding by the  
          California Transportation Commission (CTC) on or before December  
          31, 2011, if it is contained in the 2007 or 2009 STIP, funded  




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          through the Transportation Congestion Relief Program, or  
          specifically listed in a local transportation sales tax ballot  
          measure approved prior to December 31, 2008.  Nor does it  
          require a transportation sales tax authority to change the  
          funding allocations approved by the voters for categories of  
          transportation projects in a sales tax measure adopted prior to  
          December 31, 2010.

           This bill  further provides that the internal consistency  
          requirement does not affect transportation projects funded  
          solely by a local sales tax measure (in which case the CTC would  
          not be involved in the programming of funds) if they were listed  
          in a ballot measure prior to December 31, 2008 approving the  
          sales tax increase.  

          Housing elements

          The Planning and Zoning Law requires cities and counties to  
          prepare and adopt a general plan, including a housing element to  
          guide the future growth of a community.  A housing element must  
          identify and analyze existing and projected housing needs,  
          identify adequate sites with appropriate zoning to meet its fair  
          share of the regional housing need, and ensure that regulatory  
          systems provide opportunities for, and do not unduly constrain,  
          housing development.  The Department of Housing and Community  
          Development (HCD) reviews both draft and adopted housing  
          elements to determine whether or not they are in substantial  
          compliance with the law.  

          Cities and counties are required to revise their housing  
          elements on a regular basis.  Before each revision, each city  
          and county is assigned its fair share of the regional housing  
          need for four separate income categories through a two-step  
          process known as the regional housing needs assessment (RHNA).   
          In the first step, HCD determines the aggregate housing need for  
          the region during the planning period to be covered by the  
          housing element.  Depending on whether or not subregions are  
          involved in the RHNA process, this step begins 26 or 24 months  
          prior to the regional housing element due date, when HCD is  
          required to meet and consult with the council of governments  
          (COG) regarding the assumptions and methodology HCD will use to  
          determine the region's housing need.  In the second step, the  
          COG allocates the regional housing need to each city and county  
          within the region.  

          If a city or county does not have adequate sites to meet its  




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          housing need at the time the housing element is adopted, it must  
          commit to rezoning adequate sites.  SB 375 generally required  
          cities and counties to complete these rezonings no later than  
          three years after the jurisdiction's housing element is adopted,  
          provided that this does not extend beyond three years and 120  
          days from the regional housing element due date.  SB 375 also  
          allows this rezoning deadline to be extended by one year if the  
          local government has completed rezonings at densities sufficient  
          to accommodate at least 75% of the "sites" for very low and  
          low-income housing. 

           This bill  allows the deadline to complete required rezonings to  
          be extended by one year if the local government has completed  
          rezonings at densities sufficient to accommodate at least 75% of  
          the "units," as opposed to sites, for very low and low-income  
          housing.

          Prior to the enactment of SB 375, cities and counties were  
          required to revise their housing elements every five years  
          according to a staggered schedule by region.  All regions have  
          now completed the fourth revision cycle to the housing element,  
          and some regions are about to begin the fifth revision cycle.   
          In order to align the population projections used in the RHNA  
          process with those used for transportation planning and to  
          coordinate the RHNA allocation with the sustainable communities  
          strategy of the RTP that an MPO adopts every four years, SB 375  
          put housing elements in regions with an MPO on an eight-year  
          cycle.  SB 375 established the due date for the fifth revision  
          of housing elements within each region at eighteen months after  
          the date of the first RTP adopted after September 30, 2010 and  
          the due date for the sixth and subsequent revision every eight  
          years thereafter.  Pursuant to SB 375, housing elements within  
          the region of the San Diego Association of Governments (SANDAG)  
          for the fifth revision are due on June 30, 2010, and housing  
          elements for the sixth revision are due around May of 2013.  

           This bill  alters the due date for housing elements in the SANDAG  
          region such that housing elements for the fifth revision are due  
          around May of 2013, and the housing elements for the sixth  
          revision are due around January of 2021.  The planning period  
          for fifth revision housing elements in the region shall cover  
          the period of time from June 30, 2010 until January 2021.  The  
          bill also allows HCD to adjust the deadlines for adoption of the  
          fifth and subsequent revisions in any region so that the  
          deadline occurs 18 months after adoption of the region's RTP,  
          provided that the planning period for the previous housing  




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          element is not less than 90 months or more than 102 months.  

          Strategic Growth Council

          SB 732 (Steinberg), Chapter 729, Statutes of 2008, established  
          the Strategic Growth Council, comprised of the Director of the  
          Office of Planning and Research; the Secretary of the Resources  
          Agency; the Secretary for Environmental Protection; the  
          Secretary of Business, Transportation and Housing; the Secretary  
          of California Health and Human Services; and one member of the  
          public to be appointed by the Governor.  The bill further  
          required the Council to coordinate specified programs of member  
          state agencies and to award grants and loans to support the  
          planning and development of sustainable communities.  The  
          Strategic Growth Council is required to comply with the  
          Bagley-Keene Open Meeting Act.  All but the public member of the  
          council are also members of the Governor's Cabinet.  The concern  
          has been raised that the presence of these members at a cabinet  
          meeting may inadvertently require that the cabinet meeting  
          comply with the Bagley-Keene Act.  

           This bill  clarifies that a meeting of the Governor's cabinet  
          does not qualify as a meeting of the Strategic Growth Council  
          for purposes of the Bagley-Keene Act.

          COMMENTS:

           1.Purpose of the bill  .  This bill is intended as a clean-up  
            measure to both SB 375 and SB 732.  It clarifies that  
            transportation sales tax projects listed in pre-2009 ballot  
            measures are exempt from the internal consistency requirement  
            of the RTP, whether or not they are programmed by the CTC.  It  
            clarifies that cabinet meetings are not inadvertently subject  
            to the Bagley-Keene Act.  It clarifies that local governments  
            must have completed rezonings for 75% of low-income units in  
            order to get an extension on their housing element rezoning  
            requirement, and the bill seeks to smooth the transition for  
            the SANDAG from the pre-SB 375 housing element schedule to the  
            schedule under SB 375.

           2.Author amendments .  The author's office indicates that the  
            provisions relating to sales-tax funded transportation  
            projects and to housing element due dates in the SANDAG region  
            need further discussion with stakeholders.  As a result, the  
            author will offer amendments in committee to remove these two  
            provisions from the bill until these discussions have been  




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            held and the language refined.

           3.Fixing the date discrepancy  .  Long-standing law requires that  
            the RHNA process begin at least 26 months prior to a region's  
            housing element due date.  SB 375 sets the housing element due  
            date at 18 months after adoption of the RTP.  In other words,  
            the RHNA process must begin eight months prior to adoption of  
            the RTP.  The problem is that the date by which a region must  
            adopt its RTP is a moving target, so it is now unclear exactly  
            when the RHNA process must begin.  While federal law requires  
            regions to adopt their RTPs no later than every four years,  
            they often do so before the final four-year deadline, and the  
            exact date of adoption is not known until it actually occurs.   
            The committee may wish to amend the bill to require an MPO to  
            notify HCD and Caltrans of the estimated date for adoption of  
            each RTP and base the RHNA dates on this estimate.    
          
          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     April 22, 2009)

               SUPPORT:  None received.
          
               OPPOSED:  None received.