Bill Text: CA SB393 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Civil actions: housing development projects.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Engrossed) 2024-06-17 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD. [SB393 Detail]

Download: California-2023-SB393-Amended.html

---

Amended  IN  Assembly  June 03, 2024

Amended  IN  Assembly  June 19, 2023

Amended  IN  Senate  May 04, 2023

Amended  IN  Senate  April 10, 2023

Amended  IN  Senate  March 21, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 393

---

Introduced by Senator Glazer
(Coauthors: Senators Dahle, Nguyen, Niello, Seyarto, and Stern)

February 09, 2023

---

An act to add Sections 21176 and 21176.5 to the Public Resources Code, relating to environmental quality.An act to amend Section 529.2 of the Code of Civil Procedure, relating to civil actions.

LEGISLATIVE COUNSEL'S DIGEST

SB 393, as amended, Glazer. California Environmental Quality Act: judicial challenge: identification of contributors: housing development projects. Civil actions: housing development projects.

Existing law provides that in a civil action brought by a plaintiff to challenge a housing development project that meets or exceeds the requirements for low- or moderate-income housing, a defendant may seek an order requiring the plaintiff to furnish an undertaking as security for costs and damages that may be incurred by the defendant if the bringing of the action or seeking by the plaintiff of particular relief, including injunctive relief, would result in a delay in carrying out the development project. Existing law requires this motion to be made on the grounds that (1) the action was brought in bad faith, vexatiously, to delay or thwart the low- or moderate-income nature of the housing development project and (2) the plaintiff will not suffer undue economic hardship by filing the undertaking. If the court determines, after hearing, that the grounds for the motion have been established, existing law requires the court to order the plaintiff to file an undertaking that may not exceed $500,000 as security for the defendant’s costs and damages.

This bill would require the motion described above to be made solely on the ground that the action was brought in bad faith, vexatiously, for the purpose of delay, or to thwart the low- or moderate-income nature of the housing development project. The bill would permit the plaintiff, in responding to the motion, to seek to limit the amount of the undertaking by presenting evidence that filing the undertaking will cause the plaintiff to suffer undue economic hardship. The bill would require the court, in ordering the plaintiff to file such an undertaking, to take into consideration admitted evidence of the plaintiff’s economic hardship and to avoid causing the plaintiff to suffer such hardship. The bill would authorize the court to decline to impose a bond on the plaintiff if the court determines that, based on the evidence, the bond would cause the plaintiff to suffer undue economic hardship.

The California Environmental Quality Act requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment, or to adopt a negative declaration if it finds that the project will not have that effect. The act authorizes specified entities to file and maintain with a court an action or proceeding to attack, review, set aside, void, or annul an act of a public agency on grounds of noncompliance with the requirements of the act.

This bill would authorize a defendant, in an action brought pursuant to the act relating to a housing development project, to file a motion requesting the plaintiff or petitioner to identify every person or entity that contributes in excess of $10,000, as specified, toward the plaintiff’s or petitioner’s costs of the action. The bill would authorize the motion to be heard on shortened time at the court’s discretion. The bill would authorize a plaintiff or petitioner to request the court’s permission to withhold the public disclosure of a person or entity who made a monetary contribution. The bill also would require the plaintiff or petitioner to use reasonable efforts to identify the actual persons or entities that are the true source of the contributions, to include the exact total amount contributed, and to identify any pecuniary or business interest related to the housing development project of any person or entity that contributes in excess of $10,000 to the costs of the action, as specified. The bill would, except as provided, prohibit those disclosures from being admissible into evidence for any purpose. The bill would provide that a failure to comply with these requirements may be grounds for dismissal of the action by the court.

This bill would prohibit an action or proceeding from being brought in the court to attack, review, set aside, void, or annul an act of a public agency for housing projects, included in a master environmental impact report or other plan or project already approved following the completion of an environmental review, on grounds of noncompliance with the requirements of the act, as specified. The bill would provide that further environmental reviews are not subject to this provision.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

---

Bill Text

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

SECTION 1.

 Section 529.2 of the Code of Civil Procedure is amended to read:

529.2.

 (a) In all civil actions, including, but not limited to, actions brought pursuant to Section 21167 of the Public Resources Code, brought by any plaintiff to challenge a housing project which is a development project, as defined by Section 65928 of the Government Code, and which meets or exceeds the requirements for low- or moderate-income housing as set forth in Section 65915 of the Government Code, a defendant may, if the bringing of the action or the seeking by the plaintiff of particular relief including, but not limited to, injunctions, has the effect of preventing or delaying the project from being carried out, apply to the court by noticed motion for an order requiring the plaintiff to furnish an undertaking as security for costs and any damages that may be incurred by the defendant by the conclusion of the action or proceeding as the result of a delay in carrying out the development project. The motion shall be made on the grounds that: (1) that the action was brought in bad faith, vexatiously, for the purpose of delay, or to thwart the low- or moderate-income nature of the housing development project, and (2) the plaintiff will not suffer undue economic hardship by filing the undertaking. project.

(b) In responding to a motion for undertaking, the plaintiff may seek to limit the amount of the undertaking by presenting admissible evidence that filing an undertaking will cause it, and in cases where the plaintiff is an unincorporated association, its members, to suffer undue economic hardship. If the court, after hearing, determines that the grounds for the motion have been established, the court shall order that the plaintiff file the undertaking in an amount specified in the court’s order order, taking into consideration any admitted evidence of plaintiff’s economic hardship and avoiding causing the plaintiff to suffer under economic hardship, as security for costs and damages of the defendant. The liability of the plaintiff pursuant to this section for the costs and damages of the defendant shall not exceed five hundred thousand dollars ($500,000). If the court concludes, based on all of the admissible evidence presented, that a bond in any amount would cause the plaintiff undue economic hardship, the court is authorized in its discretion to decline to impose a bond.

(c) If at any time after the plaintiff has filed an undertaking the housing development plan is changed by the developer in bad faith so that it fails to meet or exceed the requirements for low- or moderate-income housing as set forth in Section 65915 of the Government Code, the developer shall be liable to the plaintiff for the cost of obtaining the undertaking.

SECTION 1.Section 21176 is added to the Public Resources Code, to read:

21176.

(a)(1)Any defendant in an action or proceeding to attack, review, set aside, void, or annul any act or decision of a public agency relating to a housing development project, as defined in subdivision (h) of Section 65589.5 of the Government Code, on the grounds of noncompliance with this division, may file a motion requesting the plaintiff or petitioner to identify every person or entity who made a monetary contribution of ten thousand dollars ($10,000) or more, or committed to contribute ten thousand dollars ($10,000) or more, for the preparation of the petition and subsequent action or proceeding. The motion may be heard on shortened time at the court’s discretion.

(2)Upon a motion by the defendant pursuant to paragraph (1), a plaintiff or petitioner shall provide the information specified in this section within seven days.

(3)Any information disclosed to the defendant by the plaintiff or petitioner pursuant to this section shall be kept confidential and shall not be disclosed to anyone for 30 days.

(4)A plaintiff or petitioner may request the court’s permission to withhold the public disclosure of a person or entity who made a monetary contribution. The court may grant the request if it finds that the public interest in keeping that information confidential clearly outweighs the public interest in disclosure. If the court grants a request pursuant to this paragraph, the information disclosed to the defendant shall be kept confidential.

(b)If the defendant makes a motion pursuant to subdivision (a), the plaintiff or petitioner shall have a continuing obligation throughout the course of the proceeding to identify any person or entity that has made a single or multiple contributions or commitments, the sum of which is ten thousand dollars ($10,000) or more, and that were intended to fund the action or proceeding within seven days of receiving the contribution. All other provisions of this section shall apply to a disclosure pursuant to this subdivision.

(c)In complying with subdivisions (a) and (b), the plaintiff or petitioner shall use reasonable efforts to identify the actual persons or entities that are the true source of the contributions.

(d)The disclosures required pursuant to subdivisions (a) and (b) shall include the exact total amount contributed and also include the identity of any pecuniary or business interest that the person or entity has related to the proposed housing development project.

(e)(1)Except as provided in paragraph (2), the information disclosed by a plaintiff or petitioner upon a motion by a defendant pursuant to this section shall not be admissible into evidence for any purpose.

(2)The information disclosed pursuant to this section shall be admissible for purposes of Section 529.2 of the Code of Civil Procedure.

(f)A court may, upon its own motion or the motion of any party, take any action necessary to compel compliance with the requirements of this section, up to and including dismissal of the action or proceeding.

(g)An individual contributing funds to file an action or proceeding pursuant to this division in that individual’s individual capacity, and not as a representative for an organization or association, has the right to limit disclosure of that individual’s personal information to an in-camera review by the court.

(h)This section does not limit or prohibit the independent discovery of funding sources based on any other provision of law, including postjudgment motions related to recovery of attorney’s fees.

SEC. 2.Section 21176.5 is added to the Public Resources Code, to read:

21176.5.

(a)An action or proceeding shall not be brought pursuant to Section 21167 challenging the approval of a housing project included in a master environmental impact report, pursuant to Article 2 (commencing with Section 21157) of Chapter 4.5, or other plan or project already approved following the completion of an environmental review conducted pursuant to this division, including the resolution of any action or proceeding brought against that prior master environmental impact report or environmental review.

(b)This section does not affect the obligations of a housing project included in a previously approved master environmental impact report, or other plan or project, to comply with the requirements pursuant to this division for completing further environmental reviews, including complying with all applicable public notice and comment requirements associated with that environmental review.

(c)Further environmental reviews relating to the housing project are subject to an action or proceeding to attack, review, set aside, void, or annul any act or decision of a public agency on the grounds of noncompliance with this division, pursuant to Section 21167.