HomeMy WebLinkAbout06. Legislative update Page 1 of 9
Item 6.
CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: JUNE 21, 2018
SUBJECT: RECEIVE UPDATE ON PENDING LEGISLATIVE MATTERS AND
POTENTIAL BALLOT PROPOSITIONSAND PROVIDE DIRECTION ON
PRIORITY LEGISLATION
SUBMITTED BY: INITIATING DEPARTMENT:
EMILY BARNETT, COMMUNICATIONS AND ADMINISTRATION-COMM SVCS AND
INTERGOVERNMENTAL RELATIONS INTERGOV REL
MANAGER
REVIEWED BY: PHILIP R. LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
ANN SASAKI, DEPUTY GENERAL MANAGER
9
, .a�- I
Roger S. Bailey
General Manager
ISSUE
In accordance with Board Policy No. BP 026 — Legislative Advocacy, the Board may provide direction to
staff on positions related to priority legislation. The 2018 legislative session is underway, and staff is
seeking Board direction on pending priority legislation.
BACKGROUND
Under BP 026 — Legislative Advocacy, when legislation has direct impact on Central San or special
significance to the Board, the General Manager will present information to the Board on priority legislation.
The Board may then provide direction as to Central San's position on the legislation.
Staff has reviewed pending legislation and worked with member associations to identify possible direct
impacts on Central San. The process to create and pass legislation is constantly in flux; the priority
June 21, 2018 Regular Board Meeting Agenda Packet- Page 21 of 156
Page 2 of 9
legislation presented in this Position Paper represents the most confident analysis and due diligence
research at this time. As new information becomes available, it will be presented at future Board
meetings.
Attached is an updated Priority Legislative Tracking Sheet and other attachments of interest. At this
meeting, staff is recommending that the Board take action or provide direction on the priority legislation
listed on the Priority Legislative Tracking Sheet based on staff recommendations listed in the Board
Legislative Summary Table.
ALTERNATIVES/CONSIDERATIONS
The Board may choose from the following positions on each piece of legislation:
• Support
• Support if Amended
• Neutral
• Oppose Unless Amended
• Oppose
FINANCIAL IMPACTS
None.
COMMITTEE RECOMMENDATION
This matter was not reviewed by a Board Committee.
RECOMMENDED BOARD ACTION
If applicable, take one of the following actions on Priority Legislative Tracking Sheet or another legislative
matter:
1. Adopt staff recommended position(s) on the priority legislation; or
2. Adopt a different position on one or more pieces of the priority legislation; or
3. Take no action
Strategic Plan re-In
GOAL ONE: Provide Exceptional Customer Service
Strategy 1 - Foster Customer Engagement and Awareness
ATTACHMENTS:
1. Updated Central San Priority Legislation Tracking Sheet
2. 11-06-18 General Election Qualified Propositions as of 06-10-18
June 21, 2018 Regular Board Meeting Agenda Packet- Page 22 of 156
Page 3 of 9
Central San 2018 Priority Legislative Tracking Sheet
as of 6/14/18
Federal/ Also Known Industry. Position Date of Board
Author Legislation Summary Organization(s) Priority Recommended by Board Notes
State As List/Position Staff Direction Decision
1 Federal President President's Protect Cuts to The President's FY19 budget request WateReuse - oppose 03/15/18 Oppose 3/6/18 - Call to action received by WateReuse to
FY19 budget Title XVI and included an over 90% cut to the Bureau of cuts sign onto WateReuse multiagency letter by COB
request Increase Reclamation's Title XVI water reuse program March 12. WateReuse Association is asking
funding for from $34.5M in FY17 to $3M. Title XVI is the Congress to reject these cuts and provide at least
WaterSMART only federal program that specifically level funding for Title XVI in FY19. Letter deadline
and Title XVI supports water recycling efforts. The for House is March 16 and Senate is March 30.
programs program has invested $692 million in direct
federal spending while leveraging at least an
additional $2.07 billion of local investment to
provide a sustainable long-term reliable
supply of water for residents and businesses
in the West.
2 Federal Napolitano (D- H. R. 5127 Water Establishes a grant program for the funding Western Recycled Water Support 03/15/18 Support 3/6/18 In House Committee on Natural Resources:
32) Los Angeles Recycling of water recycling and reuse projects. Coalition - Support, Referred to Subcommittee on Water, Power and
area, Co-author Investment WateReuse - Support Oceans. Introduced on 2/27/18. In both House
DeSaulnier (CA- and Committee on Natural Resources and Committee
11) Improvement on Transportation and Infrastructure
Act
3 Federal Katko (R-NY 24) H. R. 4902 Drinking Water Amends the Water Infrastructure Finance CASA - Support Support 03/15/18 Supporl 2/21 R In House Committee on Science, Space
and Clean and Innovation Act of 2014; provides to state and Technology: Referred to Subcommittee on
Water Loans infrastructure financing authorities additional Environment. 1/31/18 Introduced and in House
opportunities to receive loans under that Act Committee on Transportation & Infrastructure:
to support drinking water and clean water Referred to Subcommittee on Water Resources
state revolving funds to deliver water and Environment.
infrastructure to communities across the
United States.
4 Federal Boozman (R- S. 2364 Drinking Water Amends the Water Infrastructure Finance CASA - Support Support 03/15/18 Support '/30/ Introduced in Senate Committee on
AR), Co-Author (Identical bill to and Clean and Innovation Act of 2014; provides to state Environment and Public Works
Feinstein (D-CA) H.R. 4902) Water Loans infrastructure financing authorities additional
opportunities to receive loans under that Act
to support drinking water and clean water
state revolving funds to deliver water
infrastructure to communities across the
United States.
June 21, 2018 Regular Board Meeting Agenda Packet- Page 23 of 156
Page 4 of 9
Central San 2018 Priority Legislative Tracking Sheet
as of 6/14/18
5 State Wieckowski SB 831, Similar ADUs update Would prohibit the imposition of any fees, Watch: CASA, ACWA, Oppose 03/15/18 Watch SB 831 6/11/18 To Assembly Housing and
bills AB 2890 including connection or capacity fees, for the CSDA on 5/3/18 Communty Development and Local Gov't
Ting and SB construction of an accessory dwelling unit. SUPPORT: Bay Area Oppose on Committees. 5/30/18 Passed Senate. 5/22/18 Set
1469 Skinner The bill is attached for your review. ACWA Council (sponsor); Bay 3/15/18 for hearing in Senate Appropriations. 4/25/18
proposed SB 831 edits: (b)AGGessory dwelling Area Rapid Transit Author has agreed to remove language eliminating
units and jun&accesseFy dwelling units peFMitted (BART); California fee authority for water/ww connection and capacity
pursuant to this seGtion shall not be sidered by Apartment Association; charges to fall in line with last year's ADU
gene , special , orwateFCalifornia Association of agreement. 4/17/2018 - Central San sent
rOrpnra+ii.n to be a oirlor�+ial use for the
!.f...,I....I.,ne restfees entichaF,l u e ff0F n Realtors; California opposition letter to the committee to register
PUFPeses development.- For an accessory dwelling unit that Building Industry opposition to bill. CASA concerns: Eliminating fee
is not described in paragraph (1) or paragraph (2) Association (CBIA); authority for one particular type of residential
of subdivision (a), a local agency, special district, California Chamber of construction is contrary to our obligations to
or water corporation may require a new or Commerce; assess proportional fees under Propositions 218
separate utility connection directly between the and 26. It could lead to one class of ratepayers
accessory dwelling unit and the utility. Consistent subsidizing rates for another class, which is
with Section 66013, the connection may be prohibited by Prop 218. Finally, CASA believes
subject to a connection fee or capacity charge, or that there has not been sufficient time to evaluate
equivalent charge for new service that shall be the impact of the fee restrictions agreed to in SB
proportionate to the burden of the proposed
accessory dwelling unit, based upon either its size 1069 in 2016 and SB 229 in 2017. For special
or the number of its plumbing fixtures, upon the districts, the new ADU fee restrictions have only
water or sewer system. This fee or charge shall been in effect for 2 months.
not exceed the reasonable cost of providing this
service.
6 State Bloom AB 2379 Waste Requires that clothing made from fabric that Californians Against Support 03/15/18 Support r)14/18 In Assembly. To inactive file (dormant).
Management: is more than a specified percentage of Waste - Support 4/30/18 in Assembly for third reading. 4/18/18
Polyester polyester bear a conspicuous label stating amendments remove recommendation to
Microfiber that the garment sheds plastic microfibers handwash the clothing. Some BAPPG members
when washed and Feeornmending hand suggesting support. 2/14/18 introduced.
washing. Prohibits a person from selling or
offering for sale clothing made from fabric
that is more than a specified percentage
polyester that does not bear that label.
June 21, 2018 Regular Board Meeting Agenda Packet- Page 24 of 156
Page 5 of 9
Central San 2018 Priority Legislative Tracking Sheet
as of 6/14/18
State Chiu AB 3037 Community Would establish a new version of redevelopment agencies CSDA- Oppose Unless Opposed Unless 05/03/18 Opposed 6/8/18 This bill is dead. 5/25/18 Held in Assembly
Redevelopmen
(re-termed redevelopment housing and infrastructure
agencies). 1. Uses the Enhanced Infrastructure Financing Amended. Amended Unless Appropriations Committee. 4/30/18 Passed
a
t Law of 2018 District(EIFD)law as a model in many ways; however, like Amended second reading to third no amendments since
former RDAs,the new redevelopment housing and 4/26. 4/25 passed out of Asm Local Gov't
infrastructure agencies do not require voter approval and Committee - now on to Appropriations. 4/11
they are able to access the school/State share of the
property tax increment. Their access to the school/State passed out of Asm Housing and Community
share of the property tax increment requires approval from Development Committee. AB 1792 Fraiser spot bill
the California Department of Finance and will be capped at is similar. Set for hearing on 4/25/18 in Asm Local
a yet-to-be-determined amount. 2. As with EIFDs, each Gov't Committee.
affected taxing entity(each special district and typically the
county)within the jurisdiction of the redevelopment agency
would be given one seat on the board of the redevelopment
agency;the city creating the agency would have two seats
total;there would also be two public seats.,3. Similar to
EIFDs and former RDAs,the proposed redevelopment
housing and infrastructure agencies would require a certain
percentage of all revenue to go toward affordable housing
projects. The current draft requires 30 percent,which is
more than what EIFDs and former RDAs were required to
set aside.4. Unlike former RDAs,the stated intent is to
keep affected taxing entities(special districts and counties)
"whole"in terms of property tax revenue.The bill attempts
to achieve this by establishing a"passthrough"equivalent
to the amount of property tax increment diverted from the
county and special districts. The passthrough is primarily
funded with ERAF dollars.
8 State Portantino SB 1263 Ocean Requires the State Ocean Protection Council CASA - Sponsored Leg Support 05/03/18 Support 6/11/18 To Assembly Water, Parks & Wildlife and
Protection to adopt and implement a Statewide Enviro Safety & Toxic Materials Committees.
Council: Microplastics Strategy relating to microplastic 5/31/18 PASSED Senate. 5/29/18 In Senate - to
Statewide materials that pose an emerging concern for Special Consent Calendar due to lack of
Microplastics ocean health and that includes specified opposition. 5/22/18 hearing set in Senate
Strategy components, to the extent funds are Appropriations. 4/24/18 Passed from Senate
available from bonds or other sources. Committee on Natural Resources and Water 9-0.
4/18 Passed from Senate Committee on
Envornmental Quality Committee 7-0 . Only in
print on 4/11/18. Gut and amend. Hearing set for
4/18/2018 at 9:30AM in Senate Environmental
Quality Committee.
June 21, 2018 Regular Board Meeting Agenda Packet- Page 25 of 156
Page 6 of 9
Central San 2018 Priority Legislative Tracking Sheet
as of 6/14/18
State Ting AB 2065 Local Expands the definition of local agency to CSDA- Oppose Unless Oppose 05/03/18 Oppose 6/8/18 This bill is dead. 5/25/18: Held in Assembly
Agencies: include sewer, water, utility, and local and Amended. Appropriations Committee. 5/15/18 Letter signed
surplus land regional park districts, joint powers by Central San GM to oppose. 5/2/18 In Assembly
authorities, successor agencies to former Appropriations on Suspense file. 4/16/18 Read
redevelopment agencies, housing authorities, second time and amended. Re-referred to
and other political subdivisions of this state Appropriations Committee.
and any instrumentality thereof that is
empowered to acquire and hold real
property, thereby requiring these entities to
comply with the requirements for the disposal
of surplus land.
State Daly AB 2003 Public Currently, Sanitation Districts are required to Orange County Support 05/03/18 Support 5/16/18 Author removed bill - Orange Co.
contracts: post bid notices over a certain amount in a Sanitation District Sanitation will look to try again in 2019 Legislative
sanitation print newspaper of general circulation. These sponsored legislation. Session. 5/9/18 at 1:30 heard in Asm Local
districts: notice costs can be quite large, and bids for local CASA - Support, CSDA- Governement Committee. Orange County San
wastewater projects generally do not come Support estimates approximately $500,000 in savings over
from print newspaper adds. This bill would 10 years should bill pass.
instead require the notice to be published in
a manner that the district board determines
to be reasonable, which may include, but is
not limited to, newspapers, Internet Web
sites, radio, television, or other means of
mass communication.
11 State McGuire SB 929 Special Requires every independent special district to CSDA- Sponsored Support 05/03/18 Support 6/13/18 In Assembly Appropriations Committee.
Districts: maintain an Internet Web site that clearly Legislation 4/30/18 In Assembly Local Gov't Committee.
Internet Web lists contact information for the special 4/23/18 In Senate: Read third time. Passed on 38-
Sites district. 0 vote to Asm. 4/17/18 Read second time -
Senate. 4/16/18 passed out of Senate
Appropriations on 7-0 vote. 3/22/18 Central San
Letter of Support sent - CSDA Call to Action
12 State Reyes AB 2613 Failure to Pay Oppose 05/17/18 Oppo 6/4/18 In Assembly. To Inactive File. 5/29/18 In
Wages: Assembly for third reading. 5/11/18 Asked CASA
Penalties Makes an employer, or other person acting to add to their bill tracking list - Watch. 5/2/18 In
individually or as an officer, agent, or Assembly Committee on Appropriations: To
employee of another person, who fails to pay Suspense File.
or causes a failure to pay specified wages of
each employee, subject to a penalty payable
to each affected employee, per pay period
where the wages due are not paid on time. kk
June 21, 2018 Regular Board Meeting Agenda Packet- Page 26 of 156
Page 7 of 9
Central San 2018 Priority Legislative Tracking Sheet
as of 6/14/18
13 State Cervantes ACA 31 Public Prohibits an employee of a public employer Oppose 06/07/18 Oppose 6/14/18 No changes to this Constitutional
Constitutional employee from receiving an annual base salary or pay Amendment. 5/24/18 Sent to print - 3 printing
Amendment salaries: limit rate that exceeds the salary of the Governor days. 5/23/18 Introduced.
as established by the Citizens Compensation
Commission that is effective at the time the
employment contract is entered.
June 21, 2018 Regular Board Meeting Agenda Packet- Page 27 of 156
November 6, 2018 General Election Qualified Propositions as of 6/10/18
Support/ Approved
Proposition Type Opposition Revenues Raised For Ballot Summary
Housing Loans, Bond Measure N/A $4,000,000,000 Yes via Authorizes $4 billion in general obligation bonds for
Grants, and Legislation housing-related programs, loans, grants, and projects and
Programs and housing loans for veterans.
Veteran's Loans
Bond
Water Supply and Bond Measure SUPPORT: $8,877,000,000 Yes via Authorizes $8.8 billion in general obligation bonds for safe
Water Quality Act $2.21 M raisied by Signature drinking water, Sustainable Groundwater Management
of 2018 CA Waterfowl Collection (SGMA) implementation, watershed restoration, fish and
Assoc, Ducks wildlife habitat conservation, infrastructure repair, and
Unlimited, and many other water management programs including: $750
Water/Ag PAC million for safe drinking water and wastewater treatment
for disadvantaged communities and $400 million for
wastewater recycling. Fiscal Impact: State costs of$17.3
billion to pay off principal ($8.9 billion) and interest ($8.4
billion) on bonds over a 40-year period. Annual payments
would average $433 million. Annual payments would be
lower than this average in the initial and final few years,
and somewhat higher in the intervening years. Varying
fiscal effects on individual local governments depending
on specific projects undertaken, amount of grants and
loans received, and amount of local cost-share required.
Limits on State Statue SUPPORT: N/A Yes via Initiative would require dialysis clinics to issue refunds to
Dialysis Clinics' Labor SEIU- Signature patients or patients' payers for revenue above 115 percent
Revenue and UHW Collection of the the costs of(a) direct patient care, such as wages
Required OPPOSITION: and benefits of non-managerial clinic staff who furnish
Refunds statewide direct care to patients and pharmaceuticals and medical
Initiative association of supplies, and (b) healthcare improvements, such as staff
dialysis clinics training and patient education and counseling. Revenue
earned above the 115 percent cap would need to be
refunded to patients or the patients' payers, such as
insurers, each year.
June 21, 2018 Regular Board Meeting Agenda Packet- Page 28 of 156
November 6, 2018 General Election Qualified Propositions as of 6/10/18
Three States State Statue SUPPORT: Tim N/A Yes via Initiative would propose dividing California into three
Initiative Draper- venture Signature states: California, Northern California, and Southern
capitalist Collection California. The people of each state would be
allowed to choose a different name for their state.
Fiscal Impact: Assuming this measure is approved by
voters and the federal government and allowed by
the courts, all tax collections and spending by the
existing State of California would end. California's
existing state assets and liabilities would be divided
among three new states. These states would make
their own decisions about state and local taxes and
spending.
Proposition 13 Constitutional SUPPORT: N/A Yes via Measure would amend Proposition 13 to allow
Tax Transfer Amendment & $7.21VI raised to Legislation homebuyers who are age 55 or older or severely disabled
Initiative State Statue support initative to transfer the tax-assessed value from their prior home to
by Cal. Assoc. of their new home, no matter(a)the new home's market
Realtors and value; (b)the new home's location in the state; or(c)the
National Assoc. number of moves. Fiscal Impact- CA Leg Analyst Office
of Realtors. "Annual property tax losses for cities, counties, and
California special districts of around $150 million in the near term,
Chamber of growing over time to $1 billion or more per year(in
today's dollars). Annual property tax losses for schools of
Commerce. around $150 million per year in the near term, growing
over time to $1 billion or more per year(in today's dollars).
Increase in state costs for schools of an equivalent
amount in most years"
EXAMPLE Upward adjustment: (assessed value of their prior home) + [(the new home's market value)- (the prior home's market value)]
Example: An individual sold her house for$500,000. The house had a tax-assessed value of$75,000. She bought a new house for$800,000. The
tax-assessed value of the new house would be ($75,000) + [($800,000)-($500,000)] = $375,000.
EXAMPLE Downward adjustment: (assessed value of their prior home) x [(the new home's market value) - (the prior home's market value)]
Example: An individual sold his house for$500,000. The house had a tax-assessed value of$75,000. He bought a new house for$300,000. The
tax-assessed value of the new house would be ($75,000) x [($300,000) _ ($500,000)] = $45,000.
June 21, 2018 Regular Board Meeting Agenda Packet- Page 29 of 156