BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                            Senator Dave Cox, Chair


          BILL NO:  SB 1174                     HEARING:  4/19/10
          AUTHOR:  Wolk                         FISCAL:  Yes
          VERSION:  4/13/10                     CONSULTANT:  Detwiler
          
                           DISADVANTAGED COMMUNITIES

                           Background and Existing Law  

          The U.S. Census Bureau identifies a "census designated  
          place" as the statistical counterpart of a city in that it  
          is a named place with a concentration of residents,  
          housing, and commercial activity, but located in a county's  
          unincorporated territory.  Of the 598 census designated  
          places in California, 241 have household median incomes  
          that are less than 80% of the statewide household median  
          income.  Some of these disadvantaged unincorporated  
          communities are county islands (mostly surrounded by  
          cities), some are fringe communities (at or near the edge  
          of cities), and others are "legacy communities"  
          (geographically isolated).  More than 1 million people live  
          in these island, fringe, and legacy communities.

          Many of the disadvantaged unincorporated communities lack  
          public services and even public facilities like domestic  
          water, sanitary sewers, paved streets, storm drains, and  
          street lights.  Some cities and special districts are  
          reluctant to annex these areas.  Advocates want legislators  
          to create incentives and opportunities for local officials  
          to deliver better services and facilities.

          Proposition 84 (2006) authorized $5.4 billion in state  
          bonds and specifically set aside $90 million for "planning  
          grants and planning incentives."  The Strategic Growth  
          Council manages these programs (SB 732, Steinberg, 2008).   
          The Council intends to award planning grants to cities and  
          counties worth $22 million a year in 2010-11, 2011-12,  
          2012-13.  Concerned about the inequities faced by  
          disadvantaged communities, the Council will prioritize 20%  
          of each year's grants for work that benefits economically  
          disadvantaged communities.

          Every county and city must adopt a general plan with seven  
          mandatory elements: land use, circulation, housing,  
          conservation, open space, noise, and safety.  Except for  




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          the housing elements, the Planning and Zoning Law does not  
          require counties and cities to regularly revise their  
          general plans.  Cities and counties' major land use  
          decisions --- subdivisions, zoning, public works projects,  
          use permits --- must be consistent with their general  
          plans.  Development decisions must carry out and not  
          obstruct a general plan's policies.




                                   Proposed Law  

          Senate Bill 1174 requires cities and counties to review and  
          update the elements of their general plans to include data  
          and analysis, goals, and implementation measures regarding  
          unincorporated islands, fringe, or legacy communities.   
          Local officials must act before January 1, 2013 and, after  
          that, each time they revise their housing elements.

          SB 1174 requires these general plans reviews and revisions  
          to include:
                 Identification of unincorporated islands, fringe,  
               or legacy communities, including descriptions and  
               maps.
                 Quantification and analysis of six conditions  
               regarding deficient services, facilities, and housing  
               conditions. 
                 Analysis of current programs and activities that  
               address those conditions.
                 Specific, quantified goals for eliminating or  
               reducing those conditions.
                 Flexible implementation measures to carry out those  
               goals.

          The bill defines these terms:
                 "Disadvantaged unincorporated community" is a  
               fringe, island, or legacy community where the median  
               household income is 80% or less of the statewide  
               median household income. 
                 "Unincorporated fringe community" is the inhabited  
               territory within a city's sphere of influence.
                 "Unincorporated island community" is the inhabited  
               territory that is substantially surrounded by city  
               limits or cities and the Pacific Ocean.
                 "Unincorporated legacy community" is a  





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               geographically isolated community that has existed for  
               at least 50 years.

          SB 1174 also contains legislative declarations in support  
          of its requirements.


                                     Comments  

          1.   The wrong side of the tracks  .  Disparities in public  
          facilities and services is nothing new.  For decades, some  
          neighborhoods have enjoyed good schools, parks, libraries,  
          street lights, and police protection, while other areas  
          have endured rutted streets, low water pressure, inadequate  
          sewers and storm drains, and no curbs or sidewalks.  There  
          are plenty of reasons for these differences, including  
          fiscal limits and political realities.  A coalition of  
          advocates has compiled compelling information about these  
          persistent patterns.  They want legislators to change the  
          rules for allocating public works funds so that these  
          disadvantaged unincorporated communities can remedy their  
          past problems.  SB 1174 tackles that challenge by inserting  
          these concerns into local general plans.   Long considered  
          the constitutions for community development, city and  
          county general plans guide local officials' development and  
          public works decisions.  By putting these conditions  
          squarely in front of city councilmembers and county  
          supervisors, the bill makes it harder to ignore the  
          questions of social equity.

          2.   Scarce resources  .  The classic definition of politics  
          is that it's the process by which a society allocates  
          scarce resources.  Without enough money to satisfy every  
          need, each community sorts out its priorities and spends  
          its revenues accordingly.  In a state that's geographically  
          large, economically varied, and demographically diverse,  
          it's no wonder that different communities make different  
          choices about where to provide public services and  
          facilities.  The local elected officials who set policy for  
          the 58 counties, 480 cities, and 3,400 special districts  
          struggle with the question of "who gets what."  When  
          combined with the constitutional limits on raising new  
          local revenues, the state's archaic revenue and taxation  
          laws result in the fiscalization of land use.  Hemmed in by  
          these fiscal realities, local officials often chase land  
          uses that generate more revenue while shunning low revenue  





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          neighborhoods that need expensive public works.  Before  
          legislators tell local officials what to do about  
          disadvantaged communities, they need to straighten out the  
          state-local fiscal relationship.

          3.   Details, details, details  .  The data required by SB  
          1174 exceed what local planners usually use in their  
          general plans.  While knowing the availability of water and  
          sewer service and other public works is important when  
          describing disadvantaged communities, the bill's level of  
          detail looks more like a community plan or specific plan  
          than the direction found in general plans.  Only the  
          housing element law is this prescriptive.  The Committee  
          may wish to consider amendments that compress these  
          requirements into broad categories and allow local  
          officials to draft their general plans based on local  
          conditions and circumstances.

          4.   Just another mandate  .  The Legislature first required  
          cities and counties to adopt general plans in 1937 (AB 722,  
          Weber, 1937).  Over the last 70 years, legislators have  
          insisted on increasingly detailed local plans.  The recent  
          trend has been to require general plans to pay more  
          attention to specialized topics: San Joaquin Valley's air  
          quality (AB 170, Reyes, 2003), wildland fires (AB 3065,  
          Kehoe, 2004), tribal cultural places (SB 18, Burton, 2004),  
          military operating areas (SB 926, Knight, 2004), and flood  
          hazards (AB 162, Wolk, 2007).  On April 7, the Committee  
          passed SB 1207 (Kehoe) which requires cities and counties  
          to improve how their general plans address wildland fire  
          hazards.  As land use problems hit the headlines, they  
          capture the attention of legislators who react by imposing  
          new planning chores on cities and counties.  But, unlike  
          other states, California doesn't invest State General Fund  
          money in long-range, comprehensive, local planning.  The  
          burden of funding these new state mandated local programs  
          falls on local general funds and on the property owners who  
          apply for development permits.  Even with money available  
          from the Proposition 84 grants, SB 1174 is just another  
          well-intentioned, but unfunded, state mandated local  
          program.

          5.   Better planning, better decisions  .  Comprehensive land  
          use planning serves two purposes.  First, it helps public  
          officials avoid problems when they make decisions about the  
          future.  Second, it helps public officials solve past  





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          problems.  The goal of planning is not the adoption of  
          plans, but preparing public officials to make better  
          decisions.  Local general plans present information, set  
          goals and policies based on that information, and come up  
          with feasible measures to carry out those goals and  
          policies.  SB 1174 applies a similar approach to the  
          problems that confront disadvantaged communities.  SB 1174  
          helps local officials promote development that benefits  
          disadvantaged communities without obstructing the  
          community's long-term vision. 

          6.   Legislative history  .  Last year, the Senate Local  
            Government Committee passed a much broader bill dealing  
            with disadvantaged communities.  SB 194 (Florez, 2008)  
            remains in the Assembly Rules Committee, waiting for an  
            assignment to a policy committee.  SB 1174 takes a  
            narrower focus, concentrating on local general plans and  
            avoiding the reallocation of federal and state grant  
            funds.  
            
           
                         Support and Opposition  (4/15/10)

           Support  :  CRLA Foundation, California Pan-Ethnic Health  
          Network, California Communities Against Toxics, California  
          Environmental Rights Alliance, California Safe Schools,  
          Catholic Charities-Diocese of Stockton, Clean Water Action,  
          Community Water Center, Del Amo Action Committee, Ella  
          Baker Center for Human Rights, Environmental Justice  
          Coalition for Water, Fresno Metro Ministry, Housing  
          California, Just Transition Alliance, Physicians for Social  
          Responsibility, PolicyLink, San Joaquin Valley Latino  
          Environmental Advancement Project, Sierra Club-California,  
          The City Project, Urban Habitat, Professor Michelle Wilde  
          Anderson, Fresno County Supervisor Henry Perea, Kern County  
          Supervisor Michael J. Rubio.

          Opposition  :  City of Fountain Valley, County of Los  
          Angeles.