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SB 910 from page 1 ................................................. The bill is set Wednesday, August 7th, at 9:00 a.m. in aspects of the housing element, and the areas where most the Assembly Housing Committee. A number of city officials disputes occur. Ajudgesauthortytolmtfines~s e- are planning to attend the hearing, but city officials stricted to "deferring the onset of fineK' in states of across the state need to take action NOW to ask their emergency declared by the Governor or a local bankruptcy. legislators to (~D_nose this bill. Concentration of State Authority: Ali fines go to HCD in addition to numerous constitutional "separation of as opposed to the region. powers" issues, the new enforcement language contains the following: A Double-Whammy on Fines: Local governments are exposed to double fines because a court is required to Biased Legal Standard: Shifts the legal standard of impose fines if anyportion of a local housing element (often review to the state, and l imitsjudicial review to the Depart- a document the size of a phone book) is determined in a ment of Housing and Community Development's (HCD) lawsuit to not comply with the law. Local governments who determination -- not the question of whether or not the disagree with HCD are fined both by the Controller, until local government's housing element complies with the law- they agree with the state; and. if any portion of their thus circumventing the existing legal deference to the element must be altered to satisfy ajudge, the local govern- validity of a local general plan. The bill also provides that a merit is required to be fined again in the same amount by a court shall give deference to HCD's detarmination. Ifthe judge. (Even local governments with HCD-approved court determines HCD was wrong, HCD must correct its elements are required to be fined by a judge if the court action within 60 days. If the court rejects the local later determines that some portion of the HCD-approved government's appeal, the local government must pay fines elemeot fails to comply with the law.) starting from the time they filed the action. Expands HCD's Reach into Other Elements of HIGHWAY USERS TAX PAYMENTS ON HOLD General Plan: Allows HCD to require any local government $48 Million/Month Impact On Cities, $50 Million per to amend their existing HCD.approved housing element Month For Counties within 60 days, if the department disagrees with any action (outside of the housing element) that the department State Controller Kathleen Connell announced last week believes undermines a local policy, program, ordinance or that portions of the Highway Users Tax payments, benefit- regulation. Local governments are fined if they are unable lng cities with $48m monthly, will be on hold until the state to conwnce HCD staff that the alleged action does not budget is passed and signed by the Governor, These funds create a conflict with their adopted housing element, until are generally used for the research, planning, construction, such time as they agree with HCD. If the local government improvement, maintenance and operation of public streets, challenges HCD, they are then suS_iect to this biased start- highways, and mass transit, dard. While the budget stalemate continues, paychecks are Uncapped Fines, HCD Certification Limits Courts withheld for legislative staffs, legislators, the Governor and Power to Reduce Fines: Fines against Iccal governments all Constitutional officers. Among other impacts, vendors are ongoing at $0,25 cents per person per month, and will not be paid for their services to the state; payments will uncapped For the City of Los Angeles this totals $950,000 be slowed to providers of Medi-Cal services. per month ($11.4 million per year) until HCD determines a plan is in compliance. A court may only reduce fines if HCD While these payments are slowed or withheld, many certifies ~t s okay, and that the r ssues w th a Ioca housing others including the school apportionment, state employees element are not based upon adequate sites or removing payroll, CalWORKs benefits, and more, will continue to be governmental constraints -- these are the two most critical made. I Our Mission I Restore and pro:eot local con:roi 1'or cities tl~rbugh education and advocacy to enhance :he quali:y of life ?or all Californians, PAGE 2/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org