BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1174|
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                                 THIRD READING


          Bill No:  SB 1174
          Author:   Wolk (D), et al
          Amended:  4/29/10
          Vote:     21

           
           SENATE LOCAL GOVERNMENT COMMITTEE  :  3-2, 4/19/10
          AYES:  Kehoe, DeSaulnier, Price
          NOES:  Cox, Aanestad

           SENATE APPROPRIATIONS COMMITTEE  :  6-3, 5/10/10
          AYES:  Kehoe, Alquist, Leno, Price, Wolk, Yee
          NOES:  Cox, Walters, Wyland
          NO VOTE RECORDED:  Corbett, Denham


           SUBJECT  :    Land use:  general plan:  disadvantaged  
          unincorporated
                        communities

           SOURCE  :     Author


           DIGEST  :    This bill requires 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:  (1)  
          identification and mapping of each unincorporated island or  
          fringe community located within a city, and of each legacy  
          community located within a county, (2) quantification and  
          analysis of six specified conditions regarding deficient  
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          services, facilities, and housing conditions, (3) 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, and (4)  
          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.  

           ANALYSIS  :    The Planning and Zoning Law requires a city or  
          county to adopt a comprehensive, long-term general plan for  
          the physical development of the city or county and of any  
          land outside its boundaries that bears relation to its  
          planning.

          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, Chapter  
          729, Statutes of 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 percent 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  
          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.

          This bill 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.








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          This bill requires these updated general plans reviews and  
          revisions to include:

          1.In the case of a city, an identification of each  
            unincorporated island or fringe community, or in the case  
            of a county, of each legacy community, including  
            descriptions and maps.

          2.Analysis of specified conditions regarding deficient  
            services, facilities.

          3.Analysis of current programs and activities that address  
            those conditions, and whether annexation, or extension of  
            services to, an identified island or fringe community is  
            appropriate.

          4.Specific, quantified goals for eliminating or reducing  
            those conditions.

          5.Flexible implementation measures to carry out those  
            goals.

          This bill requires a city and county make a diligent effort  
          to involve all members of the public in preparing the  
          reviews and updates required.

          The bill defines these terms:

          1."Disadvantaged unincorporated community" is a fringe,  
            island, or legacy community where the median household  
            income is 80 percent or less of the statewide median  
            household income. 

          2."Unincorporated fringe community" is the inhabited  
            territory within a city's sphere of influence.

          3."Unincorporated island community" is the inhabited  
            territory that is substantially surrounded by city limits  
            or cities and the Pacific Ocean.

          4."Unincorporated legacy community" is a geographically  
            isolated community that has existed for at least 50  
            years.








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          This bill also contains legislative declarations in support  
          of its requirements.

           Comments
           
          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 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.  This bill applies a similar  
          approach to the problems that confront disadvantaged  
          communities.  This bill helps local officials promote  
          development that benefits disadvantaged communities without  
          obstructing the community's long-term vision. 

           Related Legislation
           
          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.  
           This bill takes a narrower focus, concentrating on local  
          general plans and avoiding the reallocation of federal and  
          state grant funds.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee, 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  







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          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.

           SUPPORT  :   (Verified  5/12/10)

          CA Rural Legal Assistance Foundation (co-source) 
          PolicyLink (co-source) 
          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
          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
          Housing California







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           OPPOSITION  :    (Verified  5/12/10)

          County of Los Angeles 
          City of Fountain Valley
          City of Sacramento
          California State Association of Counties
          League of CA Cities
          Regional Council of Rural Counties
          American Planning Association 

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          "SB 1174 ensures that local governments include  
          unincorporated communities in the local planning process.   
          At the time of their next housing element update or  
          comprehensive general plan update, which ever occurs first,  
          local governments will need to:

          1.Identify disadvantaged unincorporated communities within  
            their sphere of influence;

          2.Conduct an assessment of the infrastructure conditions  
            within these communities and identify existing  
            deficiencies; and

          3.Develop goals, objectives, and a timeline for addressing  
            those conditions.

          "This will ensure that local planning responds to the unmet  
          needs of California's poorest communities and supports the  
          development of healthy, equitable, and prosperous  
          communities for all Californians.

          "According to the U.S. Census data, Californians live in  
          disadvantaged, unincorporated communities.  Predominantly  
          Latino and African American, these communities range from  
          remote but concentrated settlements of industrial or  
          agricultural laborers; to neighborhoods at the fringes of  
          cities and towns that have been left out of city borders;  
          to islands within cities, surrounded on all sides by an  
          incorporated city but excluded from all of its services.

          "Residents of these areas often live without the most basic  
          features of a safe and healthy environment - services like  







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          clean water, sewage lines, storm drains, streetlights, and  
          safe housing.  Dependent on county governance for urban  
          needs, these communities are systematically underserved in  
          the overall allocation of public resources and are  
          frequently left out of local planning processes.  This  
          neglect and deprivation prevents these neighborhoods from  
          realizing their potential as livable and economically  
          viable communities and threatens the health, safety, and  
          economic security of residents.

           ARGUMENTS IN OPPOSITION  :    The opponents state, "As  
          currently drafted, this bill would impose a very expensive  
          new mandate on cities and counties to amend their General  
          Plans with an extraordinary amount of detail regarding not  
          only disadvantaged but fringe communities, and mitigate a  
          very broad and un-prioritized list of services in these  
          communities without funds to complete the requirements.  SB  
          1174 would require a city or county to amend its General  
          Plan to address the presence of island, fringe, or legacy  
          unincorporated communities inside or near its boundaries.   
          The definition of 'unincorporated communities' to which  
          this new mandate applies is extremely broad, including a  
          fringe, island, or legacy community in which the median  
          household income is 80% or less than the statewide median  
          household income (a very high income threshold that will  
          mandate additional planning efforts many areas), any  
          inhabited and unincorporated territory that is within a  
          city's sphere of influence or that is surrounded or  
          substantially surrounded by one or more cities, or a  
          geographically isolated community that is inhabited and has  
          existed for at least 50 years - regardless of income in the  
          community. ?  Other implementation roadblocks include the  
          fact that sidewalks and other services listed in the bill  
          are amenities that many local communities and counties do  
          not want.  Some of these issues are problems on every  
          street in California - street lighting and high housing  
          costs for example.  And there is a patchwork of special  
          districts that govern existing infrastructure in many of  
          these communities, making it difficult to coordinate  
          changes.  Most recently, cities and counties have begun  
          using community plans rather than the General Plan to  
          address disadvantaged communities, using community-based  
          planning to address residents' wants and needs, determining  
          which are the areas and infrastructure most in need, and  







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          then addressing these areas as funding becomes available.   
          But, this bill includes a definition of 'substandard' that  
          is not prioritized and is so broad, funding will not be  
          available in any foreseeable future."  
           

          DLW:AGB:nl  5/12/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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