REPORT TO COUNCIL
SUBJECT
Title
Informational Report on 2023 Q1 Legislative Updates
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
On October 9, 2018, the City Council adopted Resolution No. 18-8611 to approve a Legislative Advocacy Position (LAP) Policy. The LAP Policy establishes clear guidelines for advancing City goals and positions through legislative review and advocacy at the regional, state, and federal levels of government. The policy also provides guidance for City officials who serve on regional, state, and national boards, committees, and commissions when they are asked to review public policy matters and issues.
The Council is required to annually adopt or update LAPs at the beginning of the calendar year to identify specific legislative priorities outside of the LAP Policy’s legislative guiding principles. On March 21, 2023, the City Council adopted eleven (11) LAPs for 2023 on the following key issues:
• Broadband, Cable Services, and Wireless Facilities
• Community Services
• Emergency Management
• Energy Legislation, Regulations and Issues
• Housing
• Human Resources and Public Sector Employment
• Public Safety
• Regional Issues and Collaboration
• Sustainability and Environmental Protection
• Transportation Issues
• Water Supply and Conservation
The LAP Policy also requires staff to provide quarterly legislative updates on public policy items of interest to the Council and provide Council copies of letters or summary of actions on legislative items.
In coordination with City staff, the City’s legislative advocacy consultant, Townsend Public Affairs, Inc. (Townsend), tracks and monitors legislation and advocates the City’s position on various legislation at the State and federal levels of government. This report provides an update on such efforts.
DISCUSSION
Since the start of the calendar year, staff and Townsend Public Affairs have been tracking and monitoring various legislative items. The 2023 Q1 legislative tracking matrix summarizes State priority legislation (Attachment 1). The bills are grouped by their aligned LAP, guiding principle for legislative advocacy, or approved City policy (e.g., City Council Goals and Priorities), and a summary has been provided for each bill.
The LAP Policy outlines the following procedures which have streamlined the City’s legislative review and advocacy process:
• If Council has previously adopted a policy directly relevant to the legislation or the proposed legislation is generally consistent with the City’s overall guiding principles for legislative advocacy or LAP, the Mayor or City Manager may sign a letter supporting or opposing legislation on behalf of the city as further detailed below.
• Letters and other communications expressing the City’s position on legislation will customarily bear the signature of the Mayor in accordance with City Charter Section 704.2 - 704.3. If the legislation’s principal impact affects the City’s operation, the communication may be signed by the City Manager.
• In order to keep the Council informed of all City communications on legislation, copies of the letter or summary of actions will be distributed to the City Council as information items in the Council Meeting Agendas.
The City has taken action on some of the issues outlined below (e.g. submitted a letter of support, voted at a Cities Association of Santa Clara County Legislative Action Committee meeting, etc.), consistent with an adopted policy directly relevant to the legislation or the City’s overall guiding principles for legislative advocacy or LAP. Those actions are documented in the 2023 Q1 Legislative Action Summary (Attachment 2) as required by the LAP Policy to provide copies of the letters or a summary of actions to the City Council.
State Legislative Update and Outlook from Townsend
The month of March saw the State Legislature’s quick pace of considering and amending legislation to ensure bills progressed through their first house. In addition to the growing momentum of legislative progress within the Legislature, March featured numerous developments related to addressing priority issues such as homelessness, mental health reform, and high gas prices.
Notable legislative events from March include the failure of numerous bills in the Assembly and Senate Public Safety Committees related to enhanced sentencing for opioid possession and distribution. Members voted along party lines on legislation like SB 44 (Umberg), which would have required courts to provide a written admonishment to those convicted of fentanyl drug offenses, warning them of criminal liabilities if they sell a fentanyl product that kills another person. This bill, along with other measures with enhanced criminal penalties for fentanyl possession, failed in these committees. The debate over the matter hinged on whether adding to the state’s penal code would tangibly reduce opioid deaths, or rather strain existing prison resources and impact lower income communities.
In addition to policy committee events, March saw a number of bill amendments. Since the bill introduction of February 17th, the Legislature produced 1,751 Assembly Bills and 881 Senate Bills, for a total of 2,632 bills. Of those bills introduced, there were 495 spot bills and 551 intent bills between the two houses, for a total of 1,046 placeholder measures. That means 40% of the introduced bills were placeholder measures in need of substantive language amendments.
Governor Newsom Tours State to Discuss Priority Issues: Homelessness, Prison Reform, Public Safety, and Mental Health Care
In lieu of a State of the State this year, Governor Newsom opted to hold a statewide tour and meet directly with residents and make major announcements related to reducing homelessness, improving public safety, reducing health care costs, and initiating mental health care reforms. The tour took place during the week of March 16th.
The first announcement regarding reducing homelessness was made in Sacramento. During this first announcement, the Governor discussed state funding programs aimed at reducing homelessness, including the $1 billion poised to be distributed to cities, counties, and continuums of care as part of the fourth cycle of the Homeless, Housing Assistance, and Prevention (HHAP) grant program. Additionally, the Governor discussed investments in encampment resolution, including a $30 million investment to build 1,200 tiny homes across the state this year. The homes, some as small as 120 square feet, can be assembled in 90 minutes and cost a fraction of what it takes to build permanent housing. The Governor said the homes can create space to help clear homeless encampments that have sprung up across the state’s major cities.
Following his announcement on homelessness efforts, the Governor made his second announcement regarding public safety and prison reforms from San Quentin Prison. He announced that the prison will be renamed to the “San Quentin Rehabilitation Center.” The prison will move from a maximum-security prison to a prison focused on education, training, and rehabilitation. Maximum-security inmates will begin to be moved to other prisons to allow for the change. The Governor has asked the Legislature for $20 million for this initiative in the upcoming budget cycle. The new San Quentin Rehabilitation Center takes practices found in places such as Norway, the Governor discussed. The Governor also remarked, "We want this to be the preeminent restorative justice facility in the world.”
In his third announcement, the Governor discussed the State’s progress toward public safety and health reforms, including addressing the fentanyl crisis. The Governor announced that the State would begin to manufacture and distribute its own opioid antagonist medicine through its contract with CalRx. CalRx was authorized in 2020 as part of the state’s efforts to partner with drug makers that could produce cheaper generic alternatives to existing drugs that are no longer protected by patents, including naloxone and insulin. Governor Newsom has approved $100 million in the state budget for the project. These budget efforts are likely to complement legislative proposals seeking to expand access and education relating to opioid antagonist drugs
On Sunday, March 19, the Governor concluded his tour by discussing reforms that would go on the 2024 ballot to improve how California treats mental health and substance use disorders. The Governor’s proposal breaks down to three main components:
• A general obligation bond to finance the construction of thousands of new community mental health facilities throughout the state.
• Reforms to the MHSA, directing $1 billion annually to pay for housing and other community-based residential solutions, expanding treatment eligibility to include those with substance use disorders, and creating greater flexibility in the use of remaining funds.
• Alignment of behavioral health benefits across all health plans in California and new accountability and oversight measures for county behavioral health plans. (more to come)
As to what comes next, the Governor stated, “The Administration plans to work in close partnership with legislative leaders in this space including Senator Eggman and Assemblymember Jacqui Irwin, as well as with the California State Association of Counties, other critical local government stakeholders, community-based service organizations, advocates, and people with lived experience as bill language is developed.”
Governor Newsom Announces the Easement of Drought Restrictions
On March 24th, Governor Newsom announced the state’s plan to ease previous Emergency Drought Restrictions. The following restrictions have been eased, while some have been maintained in line with the States’ water preservation measures:
• Ends the voluntary 15% water conservation goal, continues to encourage using water wisely;
• Ends requirement that local water agencies implement level 2 drought contingency plans;
• Maintains ban on wasteful water uses, like watering ornamental grass on commercial grounds;
• Preserves current emergency orders focused on groundwater supply;
• Maintains orders on specific watersheds that have not benefited as much from recent rains;
• Retains state of emergency for all 58 counties so response and recovery efforts can continue.
These actions come as the state announced increased water deliveries to 29 public water agencies that serve 27 million Californians, now expecting to deliver 75% of requested water supplies - up from 35% announced in February, and the highest since 2017.
While the winter storms have mitigated some issues related to the drought, the Governor iterated that regions and communities across the state continue to experience water supply shortages, especially communities that rely on groundwater supplies that have been severely depleted in recent years.
Federal Legislative Update and Outlook from Townsend
The last month has seen Congress settle in after the leadership battles that took up much time at the beginning of the year and begin looking towards the policies that will be considered in the coming year. The House and Senate have appointed members to various leadership positions and committee seats. Additionally, the annual appropriations process has begun, even though President Biden has not yet released his proposed federal budget.
Bipartisan Wildfire Caucus
On March 28th, Senator Dianne Feinstein (D-Calif.) joined Senator Steve Daines (R-Mont.) and Representatives Joe Neguse (D-Colo.) and John Curtis (R-Utah) to launch the Bipartisan Wildfire Caucus. After record-breaking wildfires devastated communities across the western United States, this congressional caucus was created to elevate awareness and bipartisan consensus around wildfire management, mitigation, preparedness, and recovery.
Facilitating Investments Required for Emergency Services to All Towns in Our Nation (FIRE STATION) Act
On March 27th, the bipartisan FIRE STATION Act was introduced to help construct and upgrade fire stations across the country. This legislation authorizes $750 million in fire station construction grants administered by the Federal Emergency Management Agency (FEMA) for modifying, upgrading, and building fire and EMS department facilities, including local fire and EMS stations and fire training facilities.
If enacted, grant funding could be used to:
• Build, rebuild, or renovate fire and EMS department facilities.
• Upgrade existing facilities to install exhaust emission control systems; install backup power systems; upgrade or replace environmental control systems, such as HVAC systems; remove or remediate mold; and construct or modify living quarters for personnel.
• Upgrade fire and EMS stations or build new stations to meet modern building codes and standards as set by the National Fire Protection Association and International Code Council.
The legislation would require FEMA to allocate 25% of the grant funding for career fire and EMS departments, 25% for combination fire and EMS departments, and 25% for volunteer fire and EMS departments. The remaining 25% would be open to competition between the various department types. Grantees must meet prevailing wage and labor standards requirements under the Davis-Bacon Act, and procurement requirements under the Buy American Act. Grant awards would be limited to $7.5 million per project.
Senator Van Hollen and Congressman Pascrell had previously introduced a version of this legislation in the previous congress, titled the Fire Station Construction Grants Act.
This legislation is endorsed by the International Association of Firefighters (IAFF), International Association of Fire Chiefs (IAFC), National Volunteer Fire Council (NVFC), Congressional Fire Services Institute (CFSI), and National Fire Protection Association (NFPA).
H.R. 1, Lower Energy Costs Act
This week the House passed H.R. 1, the Lower Energy Costs Act. The bill focuses on lowering costs by restoring America’s energy independence. Under H.R. 1, the federal permitting process would be modified for all industries and oil and gas leasing would be expanded.
The legislative package - which combines about 20 different measures approved by the House Energy and Commerce, Natural Resources, and Transportation and Infrastructure committees - would also:
• Modify how revenue from energy leasing is shared among states and the federal government.
• Give the Federal Energy Regulatory Commission exclusive authority to approve or deny applications related to the export or import of natural gas to or from a foreign country.
• Repeal several incentive programs established or expanded by Democrats’ 2022 tax, health care, and climate change law (Public Law 117-169), including a program imposing fees for methane emissions.
H.R. 1 passed the House of Representatives on March 30th and has moved to the Senate for consideration.
HUD Makes Available an Additional $3.4 Million in American Rescue Plan Funds
HUD recently announced that it is making an additional $3,.4 million in American Rescue Plan (ARP) funding available to help HUD’s Fair Housing Initiatives Program (FHIP) agencies combat housing discrimination related to the COVID-19 pandemic. This can be discrimination on the perception that someone has COVID (i.e., Black, Brown, Asian communities may have the stigma of having COVID and landlords don't want to rent to them) or people who have suffered evictions because of loss of income due to no work because of the pandemic.
The funds constitute the fourth round of ARP funding that focuses on COVID-19 related housing discrimination. To date, more than $16 million in ARP funding has been awarded to FHIP agencies working to address the unequal impact the COVID-19 pandemic has had on communities of color, low-income communities, and other vulnerable populations through projects that encourage a more just, inclusive, and sustainable society. The funding is being awarded through FHIP’s Education and Outreach Initiative (EOI). Organizations that qualify for the funding will be able to use the money to develop, implement, and coordinate education and outreach programs designed to inform members of the public of their rights and obligations under the Fair Housing Act.
The funding that is available can be used to provide fair housing education and outreach services through several vehicles, including mass media and trainings.
The EOI grants now available are:
• ARP National Media Campaign Component (EOI-NMCC) - $1,000,000 - This component provides funds to eligible organizations to create a multi-faceted media campaign to address housing discrimination issues relating to the COVID-19 pandemic, especially in underserved communities.
• ARP EOI Regional/Local/General (EOI-GC) - $2,385,353 - This component provides funding to eligible organizations to prevent, mitigate, and respond to the fair housing related effects of the COVID-19 pandemic through enhanced fair housing education and outreach services and related infrastructure.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The City has an existing three-year agreement with Townsend Public Affairs for state and federal legislative advocacy services. These services are included at no additional cost as part of the consultant’s monthly service fee.
COORDINATION
This report has been coordinated with Townsend Public Affairs and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Note and file the informational report on 2023 Q1 legislative updates.
Staff
Prepared by: Christine Jung, Assistant to the City Manager
Approved by: Office of the City Manager
ATTACHMENTS
1. 2023 Q1 Legislative Tracking Matrix
2. 2023 Q1 Legislative Action Summary