BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1174 (Wolk)
Hearing Date: 05/10/2010 Amended: 04/29/2010
Consultant: Mark McKenzie Policy Vote: L.Gov. 3-2
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BILL SUMMARY: SB 1174 would require cities and counties to
update elements of general plans to include specified
information to address the presence of unincorporated island,
fringe, or legacy communities. The general plan update must
occur by January 1, 2013 and upon each future update of the
housing element, and would include the following:
Identification and mapping of each unincorporated island or
fringe community located within a city, and of each legacy
community located within a county.
Quantification and analysis of six specified conditions
regarding deficient services, facilities, and housing
conditions.
Analysis of current programs and activities that address those
conditions, and an evaluation of the feasibility of annexation
or extension of service to those areas.
A statement of specific, quantified goals for eliminating or
reducing those conditions, and a flexible program of actions
to achieve these goals, including an identification of
timelines and timelines.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
General Plan updates significant local costs, not
reimbursableLocal
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STAFF COMMENTS:
Under current law, cities and counties are required to adopt
general plans that incorporate seven mandated elements - land
use, circulation, housing, conservation, open space, noise, and
safety. The only element of a general plan that must be
regularly updated is the housing element; a total of 478 cities
and 58 counties must submit housing elements to the state once
every 5 years, or an average of 107 per year. Major land use
decisions must be consistent with a city or county's general
plan.
Some disadvantaged unincorporated communities are county islands
(unincorporated areas substantially surrounded by cities), some
are fringe communities (at or near the boundaries of a city),
and others are legacy communities (isolated areas inhabited for
more than 50 years). 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. This bill would
require cities and counties to account for disadvantaged
unincorporated communities when making planning decisions.
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SB 1174 (Wolk)
SB 1174 would require cities and counties to update their
general plans within two years, and upon each future update of
the housing element. General plan updates require extensive
analysis and policy development, and considerable planning staff
resources. Staff notes that the additional identification and
mapping, quantification and analysis of deficiencies, and
formulation of strategies to address the problems facing these
disadvantaged communities would come at a substantial cost to
local agencies. By imposing these additional requirements on
local governments, this bill would create a state-mandated local
program. The bill includes standard "local fee disclaimer"
language, indicating that this mandate is not reimbursable
because affected agencies have the authority to levy service
charges, fees, or assessments sufficient to pay for the bill's
requirements.
Local governments have broad fee authority to cover costs
associated with planning duties, including general plan updates.
Specifically, existing law authorizes local agencies to impose
zoning and permit fees that include "costs reasonably necessary
to prepare and revise plans and policies that a local agency is
required to adopt before it can make any necessary findings and
determinations." Case law and previous decisions by the
Commission on State Mandates support the position that local
governments' planning costs are not reimbursable when the state
imposes new planning mandates. However, to the extent that
general plans have been recently updated or would be required to
be updated outside the general cycle, SB 1174 would result in
significant additional costs to local governments that they may
not be able to recover in the timeframes specified in the bill.
Proposition 84, approved by the voters in 2006, authorized $5.4
billion in state general obligation bonds and specifically set
aside $90 million for "planning grants and planning incentives."
The Strategic Growth Council, established by SB 732
(Steinberg), Chapter 729 of 2008, manages these programs and
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. These funds
could be accessed by local governments for the general plan
updates required by this bill.