To: Board of Supervisors
Department or Agency Name(s): County Administrator’s Office
Staff Name and Phone Number: Kay Lowtrip 707-565-2431
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
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2022-2023 State and Federal End-of-Session Reports
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Recommended Action:
Recommended action
Receive Legislative and Intergovernmental Affairs End of Session Report
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Executive Summary:
This item provides and update to your Board on the State and Federal 2022-2023 legislative sessions
Discussion:
State Legislative Session Recap
2023 State Legislative Session
The first year of the two-year State legislative session has ended. The Legislature returned for the second year of the two-year session on January 3, 2024.
2022-2023 Significant State Legislation and updates:
Wildfire Insurance
Governor Newsom signed an Executive Order (EO) urging Insurance Commissioner Ricardo Lara to take swift action to address issues with the insurance market and expand coverage options for consumers. The EO aims to expand coverage choices for consumers, improve the efficiency, speed, and transparency of the rate approval process, maintain the solvency of the FAIR Plan, and direct the Department of Finance to consult with the California Department of Insurance to support the rulemaking process and help accelerate the implementation of potential regulations.
On September 21, 2023 Insurance Commissioner Lara held a press conference to announce a package of actions aimed at improving insurance choices and protecting Californians from increasing climate threats while addressing the long-term sustainability of the nation’s largest insurance market. He explained that the package will increase availability in wildfire risk areas using prior approval authority. Under the agreement, a company will write an average of 85% of the market insurance using a data-informed approach. Insurance Commissioner Lara also stated that this new strategy will use catastrophe models and will require insurance companies to offer discounts and increased transparency for home hardening. Lastly, he stated that his department will be looking into California-only reinsurance costs.
The Assembly Insurance Committee and the Assembly Select Committee on Wildfire Prevention held a joint informational hearing pertaining to Wildfire Insurance: Risk, Resiliency, and Recovery on October 9, 2023.
Lastly, on December 13th, 2023 Commissioner Lara gave a progress report on Sustainable Insurance Strategy at a legislative oversight assembly hearing. He told California Assembly members that “California is at an insurance crossroads and for many Californians this is an insurance emergency.” He underscored the need for marketplace reforms, with the FAIR Plan reporting 20 percent growth of policies in 2023 and restrictions by major insurance companies pushing more consumers into California’s insurer of last resort. He also outlined progress toward major regulatory and administrative reforms under his California Sustainable Insurance Strategy that he first announced in September.
Major Bill Updates
Signed Bills:
- AB 505 (Ting): Authorizes the Office of Youth and Community Restoration (OYCR) ombudsperson to access juvenile detention facilities at any time without prior notice and to access juvenile facility records at all times.
- AB 1484 (Zbur): Amends the Meyers-Milias-Brown Act (MMBA) to require inclusion of temporary employees in the same bargaining unit as permanent employees.
- SB 525 (Durazo): This bill (1) enacts a phased in multi-tiered statewide minimum wage schedule for health care workers employed by covered healthcare facilities, as defined; (2) requires, following the phased-in wage increases, the minimum wage for health care workers employed by covered healthcare facilities to be adjusted, as specified; (3) provides a temporary waiver of wage increases under specified circumstances; (4) and establishes a 10-year moratorium on wage ordinances, regulations, or administrative actions for covered health care facility employees, as specified.
- SB 799 (Portantino): Authorizes workers involved in a trade dispute to collect unemployment insurance (UI) benefits, after a two-week wait period, while they are on strike.
- SB 389 (Allen): This bill authorizes the State Water Resources Control Board (SWRCB) to investigate and ascertain whether or not a water right is valid, authorizes SWRCB to issue an information order in furtherance of the investigation, and authorizes a diversion of use of water ascertained to be unauthorized to be enforced as a trespass.
Governor Newsom’s Infrastructure Package
As part of the budget process, the Legislature approved the Governor’s Infrastructure Package represented by SB 145 (Newman), SB 146 (Gonzales), SB 147 (Ashby), SB 149 (Caballero), and SB 150 (Durazo). The package aims to streamline infrastructure projects that will help California reach its climate goals.
- SB 145 (Newman): Requires the Department of Transportation (Caltrans) to ensure the construction of three wildlife crossings over Interstate 15 (I-15) if an intercity passenger rail project is constructed, as specified; and authorizes Caltrans to take several actions related to its environmental mitigation or advanced environmental mitigation.
- SB 146 (Gonzales): Authorizes the use of the progressive design-build project delivery method for the California Department of Transportation (Caltrans) and the job order contracting procurement method for Caltrans and the Department of Water Resources (DWR), as well as expands and extends the existing authorization for the California Secretary of Transportation (CalSTA) to assume the responsibilities under the National Environmental Protection Act (NEPA) of 1969 for transportation projects.
- SB 147 (Ashby): Authorizes the Department of Fish and Wildlife to issue a permit under CESA that would authorize the take of a fully protected species resulting from impacts attributable to the implementation of specified projects if certain conditions are satisfied, including, among others, the conditions required for the issuance of an incidental take permit.
- SB 149 (Caballero): Revises procedures regarding the California Environmental Quality Act (CEQA) administrative record to make preparation and certification of the record more efficient, without compromising the content of the record. Extends existing expedited administrative and judicial review procedures (i.e., requiring the courts to resolve CEQA litigation within 270 days, to the extent feasible) for environmental leadership development projects (ELDPs) for eight years, permitting ELDP certification by the governor until January 1, 2032. Establishes new expedited (270 days, if feasible) judicial review procedures for four categories of public and private "infrastructure" projects, subject to eligible projects being certified by the governor, approved by the lead agency on or before January 1, 2033, and meeting specified environmental and labor requirements.
- SB 150 (Durazo): This bill embeds workforce and community benefit requirements in procurement and contracting for infrastructure and manufacturing investments related to the federal Infrastructure and Investment Jobs Act (IIJA), the Inflation Reduction Act (IRA) and the CHIPS and Science Act (CHIPS Act).
Qualified Initiatives and Constitutional Amendments:
The following measure is eligible for the March 2024 Statewide Election:
- Proposition 1: The Governor signed both AB 531, the Behavioral Health Infrastructure Bond Act of 2024, and SB 326, the Behavioral Health Services Act. These two bills will now be submitted together to the voters as a single measure to be placed on the March 5, 2024 statewide primary election ballot and designated as Proposition 1. The Governor has intentionally placed this measure on the March ballot so that no other bond interest conflicts with the passage of the MHSA reform.
The following measures are eligible for the November 2024 Statewide Election:
- ACA 1 (Aguiar-Curry): This constitutional amendment, subject to voter approval, allows a city, county, or special district, with 55% voter approval, to incur bonded indebtedness or impose specified special taxes to fund projects for affordable housing, permanent supportive housing, or public infrastructure, as specified.
- ACA 5 (Low): This constitutional amendment repeals the void and unconstitutional provision of the California Constitution that limits marriage to a “man and a woman,” and replaces it with a provision that expressly affirms that the right to marry is a fundamental right.
- ACA 13 (Ward): Requires an initiative constitutional amendment to comply with any increased voter approval threshold that it seeks to impose on future ballot measures. Guarantees in the state constitution the ability of local governments to submit advisory questions to voters.
- SCA 2 (Allen, 2022): This constitutional amendment, if approved by voters, repeals Article 34 of the California Constitution, which requires development, construction, or acquisition of publicly funded low-rent housing projects to be approved by a majority of voters in a city or county.
Potential Additional November 2024 Measures:
- Initiative 21-0042A1: Limits ability of voters and state and local governments to raise revenues for government services. If passed, it would put over $20 billion of local government fee and charge revenues at risk over 10 years. This could lead to public service reductions across cities, counties, and special districts.
- Initiative 21-0022A1: Provides funding for Pandemic Detection and Prevention by increasing taxes on incomes over $5 Million.The measure proposes a 0.75% personal income tax on Californians who make more than $5 million per year. This would increase California's top personal income tax rate to 14.05%, which is already the highest in the country.
- Initiative 21-0027A1: Eliminates an employees’ ability to file lawsuits for state labor-law violations. The initiative's goal is to ensure that independent state regulators enforce laws that employers must follow and that workers are paid on time without having to file a lawsuit.
- Initiative 21-0043A1: Raise the minimum wage for employers with 26 or more employees to $18 per hour by January 1, 2025. Employers with fewer employees would need to comply with the $18 threshold by January 1, 2026. The minimum wage will be adjusted annually to keep pace with the cost of living in California.
- Initiative 22-0005: Referendum challenging 2022 Law - Fast Food Workers. Theis a referendum to AB 257, which would establish a Fast Food Council. The council would be responsible for setting minimum wage and working standards for fast food restaurants with more than 100 locations nationwide. The law would also set a minimum wage of up to $22 per hour in 2023, with annual increases capped at a certain amount.
- Initiative 22-0006: Referendum challenging 2022 Law - Oil and Gas Well Locations. Prohibits most new or modified oil and gas wells within 3,200 feet of specified locations, including housing, schools, daycares, parks, healthcare facilities, community resource centers, detention facilities, and businesses open to the public. Requires existing wells in these areas meet specified health, safety, and environmental requirements by January 1, 2025.
- Initiative 22-0008: Expands local governments' authority to enact rent control on residential properties. It also prohibits the state from limiting the ability of cities and counties to maintain, enact, or expand residential rent control ordinances.
Federal Legislative Session Recap
Appropriations Update:
- With Congress far behind on the appropriations process, congressional leadership formally introduced another continuing resolution (CR) on January 18, 2024, that would extend Federal government funding into March. The CR would set a deadline of March 1 for Agriculture-FDA, Military Construction-VA, Transportation-HUD, and Energy-Water, with everything else funded through March 8. Lawmakers will now race to pass this CR by January 19th.
- On a positive note, with a topline funding agreement reached between the House and the Senate, the CR should provide the House and Senate Appropriations Committees with enough time to negotiate final spending amounts for all 12 appropriations bills.
The County of Sonoma is in the process of working with departments to develop earmark requests for community project funding that will be submitted to our federal representatives.
Other federal tracked legislation is included in the enclosed attachment.
Strategic Plan:
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Prior Board Actions:
February 7, 2023, Board Approved 2023-2024 Legislative Platform
March 7, 2021, Board Approved 2021-2022 Legislative Platform.
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
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Narrative Explanation of Staffing Impacts (If Required):
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Attachments:
Other Tracked Legislation
Related Items “On File” with the Clerk of the Board:
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