Bill Text: CA AB1759 | 2017-2018 | Regular Session | Introduced


Bill Title: General plans: housing element: production report: withholding of transportation funds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-02-12 - Referred to Coms. on TRANS. and H. & C.D. [AB1759 Detail]

Download: California-2017-AB1759-Introduced.html


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1759


Introduced by Assembly Member McCarty

January 04, 2018


An act to add Section 65400.5 to the Government Code, and to amend Section 2034 of, and to add Section 2036.5 to, the Streets and Highways Code, relating to state government finance.


LEGISLATIVE COUNSEL'S DIGEST


AB 1759, as introduced, McCarty. General plans: housing element: production report: withholding of transportation funds.
The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The Planning and Zoning Law requires a planning agency, after a legislative body has adopted all or part of a general plan, to provide an annual report to the legislative body, the Office of Planning and Research, and the Department of Housing and Community Development on the status of the general plan and progress in meeting the community’s share of regional housing needs. Existing law requires a planning agency to include in its annual report specified information, known as a production report, regarding units of net new housing, including rental housing and for-sale housing that have been issued a completed entitlement, building permit, or certificate of occupancy.
This bill would require the department, on or before June 30, 2022, and on or before June 30 every year thereafter and until June 30, 2051, to review each production report submitted by a city or county in accordance with the provisions described above to determine whether that city or county has met the applicable minimum production goal for that reporting period. The bill would provide that, if the department determines that a city or county has met its applicable minimum production goal for that reporting period, the department shall, no later than June 30 of that year, submit a certification of that result to the Controller.
Existing law creates the Road Maintenance and Rehabilitation Program and, after certain allocations for the program are made, requires the remaining funds available for the program to be allocated 50% for maintenance of the state highway system or to the state highway operation and protection program and 50% for apportionment to cities and counties by the Controller pursuant to a specified formula. Prior to receiving an apportionment of funds under the program from the Controller in a fiscal year, existing law requires an eligible city or county to submit to the California Transportation Commission a list of projects proposed to be funded with these funds. Existing law requires the commission to report to the Controller the cities and counties that have submitted a list of projects and requires the Controller, upon receipt of the report, to apportion funds to eligible cities and counties included in the report, as specified. Existing law requires cities and counties to maintain their existing commitment of local funds for street, road, and highway purposes in order to remain eligible for an allocation or apportionment of these funds.
This bill would, commencing with the 2022–23 fiscal year and through and including the 2051–52 fiscal year, also require cities and counties to be certified in the prior fiscal year by the Department of Housing and Community Development, as described above, in order to remain eligible for an apportionment of these funds. For each city and county that is not in compliance with this requirement, the bill would require the Controller withhold the apportionment of funds that would otherwise be apportioned and distributed to the city or county for the fiscal year and deposit those funds in a separate escrow account for each city or county that is not in compliance. The bill would require the Controller to distribute the funds in the escrow account to the applicable city or county after the city or county is certified to be in compliance and meets other specified requirements. The bill would make other technical and conforming changes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 65400.5 is added to the Government Code, to read:

65400.5.
 (a) For purposes of this section:
(1) “Department” means the Department of Housing and Community Development.
(2) “Production report” means the information reported by a city or county pursuant to subparagraph (H) of paragraph (2) of subdivision (a) of Section 65400 as a part of the annual report described in Section 65400.
(b) The department shall, on or before June 30, 2022, and on or before June 30 every year thereafter and through and including June 30, 2051, review each production report submitted by a city or county to determine whether the city or county has met the applicable minimum production goal for that reporting period. The minimum production goal shall be calculated using the following schedule:
(1) For a production report that covers a reporting period for each calendar year commencing January 1, 2022, to January 1, 2027, inclusive, the minimum production goal means that the production report reflects that the number of units of housing available in that city or county is at least 20 percent of the city or county’s share of regional housing needs for each income category.
(2) For a production report that covers a reporting period for each calendar year commencing January 1, 2028, to January 1, 2032, inclusive, the minimum production goal means that the production report reflects that the number of units of housing available in that city or county is at least 40 percent of the city or county’s share of regional housing needs for each income category.
(3) For a production report that covers a reporting period for each calendar year commencing January 1, 2033, to January 1, 2038, inclusive, the minimum production goal means that the production report reflects that the number of units of housing available in that city or county is at least 60 percent of the city or county’s share of regional housing needs for each income category.
(4) For a production report that covers a reporting period for each calendar year commencing January 1, 2039, to January 1, 2044, inclusive, the minimum production goal means that the production report reflects that the number of units of housing available in that city or county is at least 80 percent of the city or county’s share of regional housing needs for each income category.
(5) For a production report that covers a reporting period for each calendar year commencing January 1, 2045, and January 1, 2050, the minimum production goal means that the production report reflects that the number of units of housing available in that city or county is 100 percent of the city or county’s share of regional housing needs for each income category.
(c) Any calculation made by the department pursuant to subdivision (b) that results in a fractional unit shall be rounded down.
(d) If the department determines that a city or county has met its applicable minimum production goal for that reporting period as described in subdivision (b), the department shall no later than June 30 of that year submit a certification of that result to the Controller. A certification is valid for the next fiscal year.

SEC. 2.

 Section 2034 of the Streets and Highways Code is amended to read:

2034.
 (a) (1) Prior to receiving an apportionment of funds under the program pursuant to paragraph (2) of subdivision (h) of Section 2032 from the Controller in a fiscal year, an eligible city or county shall submit to the commission a list of projects proposed to be funded with these funds. All projects proposed to receive funding shall be adopted by resolution by the applicable city council or county board of supervisors at a regular public meeting. The list of projects proposed to be funded with these funds shall include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of an eligible city or county to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (b) of Section 2030.
(2) The commission shall submit an initial report to the Controller that indicates the eligible cities and counties that have submitted a list of projects as described in this subdivision that meet the requirements of paragraph (1) and that are therefore eligible to may receive an apportionment of funds under the program for the applicable fiscal year. year pursuant to paragraph (3). If the commission receives a list of projects from a an eligible city or county after it submits its initial report to the Controller, the commission shall submit a subsequent report to the Controller that indicates the eligible cities and counties that submitted a list of projects that meet the requirements of paragraph (1) after the commission submitted its initial report.
(3) The Controller, upon receipt of the initial report, shall apportion funds to eligible cities and counties. counties included in the initial report.
(4) (A) For any eligible city or county that is not included in the initial report submitted to the Controller pursuant to paragraph (2), the Controller shall retain the monthly share of funds that would otherwise be apportioned and distributed to the city or county pursuant to paragraph (3).
(B) If the Controller receives a subsequent report from the commission within 90 days of receiving the initial report from the commission that a city or county has become eligible to receive an apportionment, commission, the Controller shall apportion the funds retained pursuant to subparagraph (A) to the any eligible city or county. county included in the subsequent report.
(C) The Controller shall reapportion to all eligible cities and counties included in the initial report or a subsequent report from the commission pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 any funds that were retained pursuant to subparagraph (A) but that were not apportioned and distributed pursuant to subparagraph (B).
(b) For each fiscal year, each eligible city or county receiving an apportionment of funds shall, upon expending program funds, submit documentation to the commission that details the expenditures of all funds under the program, including a description and location of each completed project, the amount of funds expended on the project, the completion date, if applicable, and the estimated useful life of the improvement.
(c) Prior to receiving an apportionment of funds under the program pursuant to paragraph (2) of subdivision (h) of Section 2032 from the Controller in a fiscal year, an eligible city or county may expend other funds on eligible projects and may reimburse the source of those other funds when it receives its apportionment from the Controller.

SEC. 3.

 Section 2036.5 is added to the Streets and Highways Code, to read:

2036.5.
 (a) Commencing with the 2022–23 fiscal year, and until the 2051–52 fiscal year, in addition to the requirement specified in Section 2036, in order to remain eligible in any fiscal year for an apportionment of funds pursuant to paragraph (2) of subdivision (h) of Section 2032 a city or county shall, in the prior fiscal year, be certified by the Department of Housing and Community Development pursuant to Section 65400.5 of the Government Code.
(b) For each city or county that is not in compliance with subdivision (a), the Controller shall withhold the apportionment of funds that would otherwise be apportioned and distributed to that city or county for the fiscal year and shall deposit those funds in a separate escrow account for each city or county that is not in compliance with subdivision (a).
(c) The Controller shall distribute the funds held in an escrow account created pursuant to subdivision (b) to the applicable city or county after both of the following occur:
(1) The city or county is certified by the Department of Housing and Community Development pursuant to Section 65400.5 of the Government Code in the prior fiscal year.
(2) The city or county submits a list of projects proposed to be funded with the funds in the escrow account that meet the requirements of subdivision (a) of Section 2034 to the commission and the commission submits a report to the Controller indicating that the list of projects meets those requirements.
(d) If a city or county whose funds have been withheld complies with paragraph (1) of subdivision (c) but does not comply with paragraph (2) of subdivision (c), the Controller shall reapportion the funds that have been withheld to eligible cities and counties pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103.
(e) A city or county that receives an apportionment of funds pursuant to this section shall comply with subdivision (b) of Section 2034 with respect to the expenditure of those funds.

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