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9� -� <br /> State Fiscal Reform. While the governor called a special session to deal with this issue, and <br /> proposed a legistative altemative to Proposition 76, there was no movement on his proposal. <br /> Hearings produced testimony from detractors to the govemor's ideas, but no serious altematives. <br /> It should be noted that the special sessions called by the govemor on both fiscal reform and <br /> pension reform have not recessed. While not expected, the governor could again activate these <br /> during the legislative interim this fall. <br /> Housing Reform. A number of ideas surfaced in this area this year, with proposals from <br /> Business, Transportation and Housing Secretary Sunne McPeak, Senate Pro Tempore Don <br /> Perata and a number of other legislators. <br /> The League also worked hard on this issue, with its HousinglGeneral Plan Task Force conducting <br /> intense discussions over many months with representatives of the building industry in an effort to <br /> identify changes to the housing approval process and new sources of funding that cities need to <br /> pay for local services and infrastructure. These reform discussions are still ongoing, and will <br /> continue throughout the fall and into next year. <br /> One measure that did pass, however, was SB 575 (Torlakson), which restricts local abiliry to <br /> unreasonably deny affordable housing developments. The bill is the result of discussions <br /> between a task force of city attomeys and housing advocates to update existing state anti-NIMBY <br /> law. <br /> The measure now tightens existing law to limit local denials of affordable housing developments, <br /> and authorizes courts to impose fines on those communities when courts deem their actions to be <br /> in "bad faith." Central to the success of this effort was the goodwill demonstrated by Sen. <br /> Torlakson, who agreed to delete controversial elements that collaborative discussions could <br /> occur. <br /> Eminent Domain. This issue surfaced in late June, in reaction to the recent United States <br /> Supreme Court decision in Kelo vs. New London, where the media and some legislators <br /> erroneously interpreted as an expansion of state and local governments' eminent domain <br /> authority. <br /> In response, Sen. Tom McClintock introduced SCA 15, along with more than 40-co-authors. The <br /> proposed constitutional amendment would prohibit the use of eminent domain for any property <br /> that will not be owned and occupied by a govemment agency. The measure was opposed by the <br /> League, the Westem Center on Law and Poverty, the Califomia Redevelopment Association <br /> (CRA), and a number of individual cities. Although SCA 15 did not move out of the Senate <br /> Judiciary Committee, the issue was the topic of numerous hearings. Various other legislative <br /> proposals were also introduced. <br /> The Senate Local Govemment Committee held an oversight hearing on the Kelo case, and heard <br /> testimony from property rights advocates who argued strenuousty that reforms to the eminent <br /> domain process were badly needed. Two virtually identical measures, AB 1162 (Mullin) and SB <br /> 1026 (Kehce), would have imposed a iwo-year moratorium on the use of eminent domain for <br /> owner-occupied housing, during which time the state would undertake a study of how eminent <br /> domain was applied in Califomia. The measures appeared to gain momentum during the final <br /> days of the Session, but eventually stalled. <br /> Interim hearings on the eminent domain issue will occur during the fall. Meanwhile, it is <br /> anticipated that Senator McClintock may begin efforts to qualify the contents of his SCA 15 as an <br /> initiative measure in 2006. <br /> 4 <br />