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HomeMy WebLinkAboutBOARD STANDING COMMITTEES - 05202024 - Legislation Cte Agenda PktMonday, May 20, 2024 1:00 PM CONTRA COSTA COUNTY 2255 Contra Costa Blvd., Suite 202, Pleasant Hill 3361 Walnut Boulevard, Suite 140, Brentwood, CA 94513 AGENDA Legislation Committee Supervisor Diane Burgis, Chair Supervisor Ken Carlson, Vice Chair https://cccounty-us.zoom .us/j/82970370770 Call In: 1-888 278 0254, Access code: 219464 1 Legislation Committee AGENDA May 20, 2024 The public may attend this meeting in person at either above location . The public may also attend this meeting remotely via Zoom or call-in. Agenda Items: Items may be taken out of order based on the business of the day and preference of the Committee. 1.Introductions 2.Public comment on any item under the jurisdiction of the Committee and not on this agenda (speakers may be limited to two (2) minutes). 3.RECEIVE and APPROVE the Meeting Minutes for the April 16, 2024 meeting of the Legislation Committee, with any necessary corrections . 24-1457 Draft Meeting Minutes 04.16.24Attachments: 4.RECEIVE a report on federal matters of interest to the County and provide direction and/or input as needed. 24-1453 Attachment A: Federal UpdateAttachments: 5.CONSIDER the matter of Unfunded and Restricted Funding of Agriculture/Weights & Measures Departments and provide direction and /or input as needed. 24-1454 Attachment AAttachments: 6.CONSIDER the recommendation to oppose the "Taxpayer Protection and Government Accountability Act” (Initiative #1935), a measure that would revise the California Constitution to restrict the ability of the state, counties, other local agencies, and the electorate to approve or collect taxes, fees, and other revenues . 24-1455 Attachment A: TPA Initiative Toolkit from CSACAttachments: Page 1 of 2 2 Legislation Committee AGENDA May 20, 2024 7.RECEIVE a report on the FY 24-25 State Budget and the 2024 Bills of Interest to the County and provide direction and/or input, as needed. 24-1456 Attachment A: State Budget and Bills of Interest Update Attachment B: FACT-SHEET_-May-Revise-2024_05.10.2024 Attachment C: CSAC Budget Action Bulletin Attachment D: Bills of Interest 05.20.24 Attachments: 8.The next meeting is currently scheduled for July 22, 2024 at 1:00 p.m. 9.Adjourn General Information This meeting provides reasonable accommodations for persons with disabilities planning to attend a the meetings. Contact the staff person listed below at least 72 hours before the meeting. Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the County to a majority of members of the Committee less than 96 hours prior to that meeting are available for public inspection at 1025 Escobar St., 4th Floor, Martinez, during normal business hours. Staff reports related to items on the agenda are also accessible on line at www.co.contra-costa.ca.us. HOW TO PROVIDE PUBLIC COMMENT: Persons who wish to address the Committee during public comment on matters within the jurisdiction of the Committee that are not on the agenda, or who wish to comment with respect to an item on the agenda, may comment in person, via Zoom, or via call-in. Those participating in person should offer comments when invited by the Committee Chair. Those participating via Zoom should indicate they wish to speak by using the “raise your hand” feature in the Zoom app. Those calling in should indicate they wish to speak by pushing *9 on their phones. Public comments generally will be limited to two (2) minutes per speaker. In the interest of facilitating the business of the Board Committee, the total amount of time that a member of the public may use in addressing the Board Committee on all agenda items is 10 minutes. Your patience is appreciated. Public comments may also be submitted to Committee staff before the meeting by email or by voicemail. Comments submitted by email or voicemail will be included in the record of the meeting but will not be read or played aloud during the meeting. For Additional Information Contact: Lara DeLaney, staff to Committee, at (925) 655-2057 or lara.delaney@cao.cccounty.us Page 2 of 2 3 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:24-1457 Agenda Date:5/20/2024 Agenda #:3. LEGISLATION COMMITTEE Meeting Date: May 20, 2024 Subject:Meeting Minutes for the Legislation Committee Meeting of 4/16/24 Submitted For: Legislation Committee Department: County Administrator’s Office Referral No: 2024-01 Referral Name: Meeting Minutes Presenter: L. DeLaney Contact: (925) 655-2057 Referral History: County Ordinance requires that each County body keep a record of its meetings. Though the record need not be verbatim, it must accurately reflect the agenda and the decisions made in the meeting. Referral Update: Attached for the Committee’s consideration is the draft Meeting Minutes for the April 16, 2024 Legislation Committee meeting. Recommendation(s)/Next Step(s): RECEIVE and APPROVE the Meeting Minutes for the April 16, 2024 Legislation Committee meeting. Fiscal Impact (if any): None. CONTRA COSTA COUNTY Printed on 5/15/2024Page 1 of 1 powered by Legistar™4 Meeting Minutes - Draft CONTRA COSTA COUNTY Legislation Committee Supervisor Diane Burgis, Chair Supervisor Ken Carlson, Vice Chair https://cccounty-us.zoom.us/j/82970370770 Call In: 1-888 278 0254, Access code: 219464 10:00 AM2255 Contra Costa Blvd., Suite 202, Pleasant Hill | 3361 Walnut Boulevard, Suite 140, Brentwood, CA 94513| Tuesday, April 16, 2024 1.Introductions Vice Chair Carlson convened the meeting at 10:01 a.m. from his office. Chair Burgis was in attendance from her office but having computer issues; these issues resolved after Public Comment, and she was able to resume chairing the meeting . No members of the public joined the meeting from either Supervisor's office. Also in attendance were: Lara DeLaney, staff to the Committee J. Dante Kurt Henke, AP Triton Mark Hartwig Colleen Awad, District IV Senior District Representative Esa Ehmen-Krause, Chief Probation Officer Jim Davenport, Thorn Run Partners Paul Schlesinger, Thorn Run Partners Marshall Bennett, Director of Emergency Medical Services Dr. William Walker Lewis Broschard, Fire Chief CCCFPD Timothy Ewell, Chief Assistant County Administrator Michelle Rubalcava, Nielsen Merksamer Kiki Farris, County Probation Department Shoshana Wechsler Monica Nino, County Administrator Will Nelson, Department of Conservation & Development John Kopchik, DCD Director Tom Geiger, County Counsel Jody London, County Sustainability Coordinator Geoff Neill, Nielsen Merksamer Maureen Toms, Department of Conservation & Development chold Page 1 of 5 5 Legislation Committee Meeting Minutes - Draft April 16, 2024 Diane Burgis and Ken CarlsonPresent: 2.Public comment on any item under the jurisdiction of the Committee and not on this agenda (speakers may be limited to two (2) minutes). No public comment was received. 3.RECEIVE and APPROVE the Meeting Minutes for the March 25, 2024 meeting of the Legislation Committee, with any necessary corrections . 24-1111 Attachments:Meeting Minutes Draft 03.25.24 The Minutes for the March 25, 2024 meeting were approved as presented. This Consent Item was approved. 4.RECEIVE a report on federal matters of interest to the County and provide direction and/or input as needed. 24-1112 Attachments:Attachment A: Federal Update The County's federal lobbyists, Paul Schlesinger and Jim Davenport, provided an update to the staff report. They discussed the political challenges in the House of Representatives for Speaker Johnson, with members of his own party expressing an intent to oust him from the leadership position. Regarding appropriations for FY '25, no guidance had been issued as yet on "Community Project Funding" (formerly known as "earmarks"), but Jim reported it should be a similar process to last year, with minor tweaks. He anticipated that Congressman DeSaulnier's portal for applications would soon be open . He noted that he and Abigail Fateman, from the Department of Conservation and Development, were just in Congressman DeSaulnier's office in Washington, advocating for the Knightsen Wetland Restoration project and discussing the Harmful Algal Blooms Demonstration project as well. Chair Burgis provided input on the Harmful Algal Blooms money, noting that project partnering has made it difficult to utilize the funding . She expressed an interest in pursuing funding to address the situation in the Delta through other means than through an Army Corps of Engineers project. Further discussion about the Delta ensued, with Jim discussing a letter the delegation had sent to the Corps to request all possible steps to consider the environmental consequences of the Governor's proposed Delta Conveyance Project; a response should be expected soon. Vice Chair Carlson indicated a meeting had also been held with Region 9 of the EPA the prior week regarding the Conveyance project . Chair Burgis expressed appreciation for the advocacy efforts. No public comments were made. This Consent Item was received. Page 2 of 5 6 Legislation Committee Meeting Minutes - Draft April 16, 2024 5.CONSIDER recommending a position of "Oppose" to the Board of Supervisors on SB 1057 (Menjivar) Juvenile Justice Coordinating Council, a bill that proposes to make considerable changes to the local planning body and associated process for the deployment of Juvenile Justice Crime Prevention Act (JJCPA) funds, as recommended by the Chief Probation Officer. 24-1113 Attachments:Attachment A: SB 1057 analysis and CPOC Oppose Letter Chief Probation Officer Ehmen-Krause addressed the Committee about her concerns with SB 1057, noting its similarity to previous bills . She noted the significant disruption and destabilization to the system that the bill would create . Chair Burgis inquired about the motivation behind the bills, which was explained as long-standing issues with Los Angeles County's Probation department. Vice Chair Carlson supported the recommendation to oppose the bill, and Chair Burgis concurred. No public comments were made. Recommend a position of "Oppose" to the Board. 6.CONSIDER a position recommendation to the Board of Supervisors on AB 2973 (Hart) Emergency Services, a bill that purportedly intends to clarify the statutory responsibilities of counties, boards of supervisors, and local emergency medical service agencies regarding EMS and ambulance services and reaffirm the authority of the boards of supervisors in EMS and ambulance service provision decisions. 24-1114 Attachments:Attachment A-- AB 2973 (Hart) Bill Text as Amended 04.02.24 Attachment B-- AB 2973 Committee Analysis Asm Emergency Mgmt 04.08.24 Attachment C--Fact Sheet AB 2973 (Hart) EMS Coordination 4.2 Attachment D-- Oppose and Concern Position Letters Attachment E-- Prior CCC position letters on related bills Attachment F--AB 2973 Support Letters The County's EMS Director, Marshall Bennett, provided his assessment of the bill, AB 2973, which he suggested would lead to Emergency Medical System fragmentation, degradation of medical control, and ultimately would not serve the public and would erode county anti-trust protections. Contra Costa County Fire Protection District Chief, Lewis Broschard, noted that amendments to the bill were made in the Assembly just the previous day that may address Marshall's comments. He added that the Emergency Medical System is a complex system and that the bill, as currently amended, seeks to give boards of supervisors multiple options, which he then discussed . He noted that the author has accepted multiple amendments, and he then advocated for a support position on the bill. Additional speakers included Mark Hartwig, the Fire Chief of Santa Barbara County and Kurt Henke of AP Triton, who each provided their assessment of the bill and its impacts. Chair Burgis requested the input of Chief Assistant County Administrator, Tim Ewell, who provided a historical perspective of the County's engagement on these issues and noted the County's own public process was anticipated this fall . Chair Burgis Page 3 of 5 7 Legislation Committee Meeting Minutes - Draft April 16, 2024 requested County Counsel, Tom Geiger, to weigh in. Tom indicated that he had not seen the most recent set of amendments to the bill, but regardless, it would not change how Contra Costa does things. He also stated that ambulance procurement without a competitive process would remove county anti-trust protection . Chief Broschard provided additional comments about the most substantive amendment to the bill that removed EMS Plan sign-off by the Board. Marshall responded that there would still be impacts that would render the system unmanageable, degrade medical control, and expose the County to anti-trust liability. Dr. William Walker provided comments about the County Health Executives Association of California's (CHEAC) recent discussion of the bill and a recommendation to "Watch with concerns," which he noted was similar to the Urban Counties of California (UCC) position. Mr. Henke added that he believed the concerns could be addressed in the bill and would give the County more options . The Committee expressed concerns with the dynamics of how the bill was developing . They noted that they had not seen CSAC's opinion on the bill as yet and wanted to wait until that opinion was shared. Because there was no urgency for a County position on the bill, the Committee directed staff to continue to watch the bill and bring it back at a subsequent meeting. (Note, the bill was subsequently pulled from hearing by the author and is not moving forward.) Watch the bill. 7.CONSIDER recommending a position of "Oppose" to the Board of Supervisors on AB 2557 (Ortega) and AB 2489 (Ward), bills that would limit the capacity of local agencies to use contractors to provide local services. 24-1115 Attachments:Attachment A: AB 2557 and AB 2489 Bill Text The Committee supported a position of "Oppose" on the bills, AB 2557 and AB 2489, which was consistent with the adopted State Legislative Platform and prior Board of Supervisors advocacy on related bills . Find an Oppose position consistent with the Platform. 8.CONSIDER finding consistent with the adopted 2023-24 State Legislative Platform or recommending a position of "Support" to the Board of Supervisors on AB 3233 (Addis) Oil and gas: operations: restrictions: local authority, a bill that authorizes a local entity, by ordinance, to limit or prohibit oil and gas operations or development in its jurisdiction, notwithstanding any other law or any notice of intention, supplemental notice, well stimulation permit, or similar authorization issued by the State Oil and Gas supervisor or district deputy. 24-1116 Attachments:Attachment A: AB 3233 Bill Text Staff provided a brief summary of the bill, AB 3233. Public comment was provided by Shoshana Wechsler who noted that the cities of Antioch and Brentwood had recently passed related ordinances to limit oil and gas operations and wanted it entered into the record that this bill clarifies and reaffirms existing rights . She noted that CSAC had joined an Amicus brief in December 2022 which supported Monterey County in its effort Page 4 of 5 8 Legislation Committee Meeting Minutes - Draft April 16, 2024 to defend its drilling ordinance. The Director of the Department of Conservation and Development, John Kopchik, indicated that the intent of the bill is clearly to give authority to counties and cities, if they wish to use it, to enact policies, and this was a principle that our County has supported. Vice Chair Carlson inquired about the kinds of gas operations that could be included; Mr. Kopchik noted it was comprehensive. No further public comments were offered. The Committee found the bill consistent with the adopted State Legislative Platform. Find the bill consistent with the Platform. 9.RECEIVE a report on the FY 24-25 State Budget and the 2024 Bills of Interest to the County and provide direction and/or input as needed. 24-1117 Attachments:Attachment A Attachment B: CSAC 2024 Legislative Priorities Attachment C: Bills of Interest The County's state lobbyist, Geoff Neill, provided an update on the State Budget and the "Early Actions" taken by the Legislature to address the budget deficit, which amount to $17.3 billion. He also noted that other one-time funds may be pulled back by the state, and the funding for the Bay Point Library was a critical concern . CAO Nino expressed additional concerns over the Public Defender's grant funding . Chair Burgis suggested that affected departments and advocates for the services may need to assist with flagging these concerns. No public comments were offered. This Consent Item was received. 10.The next meeting is currently scheduled for Monday, May 20, 2024 at 1:00 p.m. 11.Adjourn Chair Burgis adjourned the meeting at 11:20 a.m. Page 5 of 5 9 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:24-1453 Agenda Date:5/20/2024 Agenda #:4. LEGISLATION COMMITTEE Meeting Date: May 20, 2024 Subject:Federal Legislation of Interest to Contra Costa County Submitted For: Legislation Committee Department: County Administrator’s Office Referral No:2024-04 Referral Name: Federal Update Presenter: P. Schlesinger and J. Davenport, Thorn Run Partners Contact: L. DeLaney, 925-655-2057 Referral History: The Legislation Committee of the Board regularly receives reports on federal legislation and budget matters of interest to the County and provides direction and/or input to staff and the County’s lobbyists, as necessary. Referral Update: See Attachment A. Recommendation(s)/Next Step(s): RECEIVE the report and provide direction/input as needed. Fiscal Impact (if any): None. CONTRA COSTA COUNTY Printed on 5/15/2024Page 1 of 1 powered by Legistar™10 1 The TRP Tip Sheet May 15, 2024 CAPITOL HILL UPDATE — TODAY IN CONGRESS. Both chambers will resume legislative business today. On the House side, lawmakers will take up a rule that will govern debate on a series of policing-focused bills, as well as legislation that would block the withholding of aid to Israel. Lawmakers will also hold final up-or-down votes on a series of suspension bills that were debated yesterday, including a bill to reauthorize the Federal Aviation Administration (FAA). Meanwhile, the Senate will gavel in to resume consideration of pending Biden administration nominees, starting with Courtney O'Donnell's nomination to be United States Permanent Representative to the United Nations Educational, Scientific, and Cultural Organization (UNESCO). Senators are also slated to vote on a Republican-led measure that would nullify a Treasury Department rule granting flexibility on pandemic-era aid for states and municipalities. NEW TODAY... — BIPARTISAN SENATE GROUP UNVEILS AI 'ROADMAP.' A bipartisan group of senators unveiled a "roadmap" for artificial intelligence (AI) that summarizes key findings from the Senate's AI insight forums last year, and identifies key policy topics that merit bipartisan consideration in the 118th Congress and beyond. Policy priorities highlighted in the roadmap include: •Increasing funding for AI innovation to advance U.S. leadership in AI, maintain ourglobal competitiveness, and perform cutting-edge AI research and development. •Ensuring enforcement of existing laws for AI, including ways to address any gapsor unintended harmful bias; prioritizing the development of standards for testingto understand potential AI harms; and developing use case-specific requirementsfor AI transparency and explainability. •Encouraging a conscientious consideration of the impact AI will have on the U.S.workforce, including the potential for job displacement and the need to upskill andretrain workers. •Bolstering national security by leading globally in the adoption of emergingtechnologies and addressing national security threats, risks, and opportunities forAI. •Addressing challenges posed by deepfakes related to election content andnonconsensual intimate images, as well as examining the impacts of AI onprofessional content creators and the journalism industry. Attachment A 11 2 • Identifying ways to ensure higher education institutions and companies of all sizes can compete in AI innovation, including through reviewing federal statutes and regulations that might affect innovation and fully funding the National AI Research Resource (NAIRR). • Establishing a strong comprehensive federal data privacy framework. • Mitigating the threat of potential long-term risk scenarios. RECENT DEVELOPMENTS... — TRP TRACKERS: ARTIFICIAL INTELLIGENCE. We have recently updated a pair of TRP products that provide an overview of key AI-related activities in Washington. • Click to view TRP's comprehensive AI tracker that covers key activities in the Legislative and Executive Branch. • Click to view TRP's AI "Shot Clock," which overviews the timeline of federal agency actions mandated under the administration's AI executive order. — WHITE HOUSE ANNOUNCES CHINA TARIFF HIKES. The Biden administration announced an increase in tariffs of Chinese products across various strategic sectors, including medical products, steel and aluminum, semiconductors, electric vehicles (EV), batteries, critical minerals, solar cells, and ship-to-shore cranes. • Medical Products. Tariff rates on syringes and needles will increase from 0 percent to 50 percent in 2024. For certain personal protective equipment (PPE) — including certain respirators and face masks — the tariff rates will increase from 0–7.5 percent to 25 percent in 2024. Tariffs on rubber medical and surgical gloves will increase from 7.5 percent to 25 percent in 2026. • Semiconductors. The tariff rate on semiconductors will increase from 25 percent to 50 percent by 2025. • Batteries & Critical Minerals. The tariff rate on lithium-ion EV batteries will increase from 7.5 percent to 25 percent in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5 percent to 25 percent in 2026. The tariff rate on battery parts will increase from 7.5 percent to 25 percent in 2024. • Steel & Aluminum. The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5 percent to 25 percent in 2024. • Solar Cells. The tariff rate on solar cells will increase from 25 percent to 50 percent in 2024. • Ship-to-Shore Cranes. The tariff rate on ship-to-shore cranes will increase from 0 percent to 25 percent in 2024. — HOUSE EYES PASSAGE OF FAA REAUTHORIZATION, E&C SUSPENSION BILLS. Congress returned to action on May 14 as the House looks to send a long-term reauthorization of the Federal Aviation Administration (FAA) to the president's desk. The FAA Reauthorization Act came up for consideration under suspension of the rules, and it is expected to pass the House with strong bipartisan support. Additionally, House lawmakers will take up several suspension bills out of the Energy and Commerce (E&C) Committee, including a measure that would require event ticket sellers and resellers to disclose the total price of tickets and provide refunds for canceled or postponed events. The House will also take up legislation to mandate "do not flush" Attachment A 12 3 labels and symbols on packages of non-flushable, disposable wipes. Other notable bills up for consideration would: • Establish a Commerce Department program to promote U.S. supply chain resilience and develop best practices for domestic manufacturers to reduce supply chain disruptions (H.R. 6571); • Create a pilot program to explore the use of artificial intelligence (AI) at the Consumer Product Safety Commission (CPSC) (H.R. 4814); • Reauthorize the National Telecommunications and Information Administration (NTIA) (H.R. 4510); • Assign the Commerce Department to be the principal adviser to the president on the deployment and use of blockchain or other “distributed ledger technology” (H.R. 6572); and • Expand the Community Oriented Policing Services (COPS) Program to support law enforcement recruitment activities (S. 546). CSAC Federal Update – FAA Update, Farm Bill Proposals, Affordable Connectivity Program, and More May 9, 2024 Major FAA Rewrite Remains in Holding Pattern Ahead of a Friday deadline, the Senate this week continued to work through legislation (H.R. 3935) that would reauthorize the Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB) for the next five years. As one of the few remaining must-pass measures this year, the package has become a magnet for dozens of unrelated policy riders. Despite a recent bipartisan, bicameral deal, lawmakers have been unable to work out an agreement on amendments that would allow the measure to move forward. As action in the Senate has temporarily stalled, the House on May 8 approved a one-week extension. However, absent a unanimous consent agreement, the upper chamber may not be able to pass the short-term extension or the longer-term overhaul before the agency’s authority expires on May 10. In the meantime, House leaders are urging their Senate colleagues to limit any unrelated provisions or risk more delays in the lower chamber. Of particular interest to California counties, H.R. 3935 would increase funding for the Airport Improvement Program (AIP), which provides federal support for local airport construction and safety-related projects. The AIP is currently funded at $3.35 billion; the bicameral agreement would boost funding to $4 billion annually. In an effort to address the nation’s pilot shortage, the legislation includes a number of provisions that would boost the supply of certified airline pilots. For example, the bipartisan agreement would establish a competitive grant program within the U.S. Attachment A 13 4 Department of Transportation to enable flight training schools to recruit and train military veterans to become commercial pilots and certified flight instructors. The package also includes a number of provisions aimed at providing various consumer protections, including language that would create a first-ever Office of Aviation Consumer Protection, as well as provisions that would provide clear standards in law for refunds when an airline cancels or significantly delays a flight. A section-by-section summary of the FAA agreement can be found here. House, Senate Ag Leaders Release Competing Farm Bill Proposals Last week, House and Senate committee leaders released competing proposals to reauthorize the Farm Bill. For his part, House Agriculture Committee Chair GT Thompson (R-PA) unveiled a five-page summary document with a broad overview of key policy objectives. Draft text of the bill is expected to be available soon, as Thompson is planning to consider the legislation in committee ahead of the Memorial Day recess. Across Capitol Hill, Senate Agriculture Committee Chair Debbie Stabenow (D-MI) posted a much more extensive outline of her proposal. While the release of the two blueprints represents the most significant action on Farm Bill reauthorization this Congress, both proposals include provisions that are framed as non-starters for the opposing party. In terms of the policy, Democrats and Republicans both emphasize the need to bolster conservation programs, but they differ in how to achieve that goal. Republicans are aiming to use Inflation.Reduction.Act (IRA) funds for an expanded range of conservation practices. However, Democrats are opposed to any reprogramming of IRA funds, unless it directly addresses climate change. In addition, Democrats will push back against any reforms that would reduce benefits under the Supplemental Nutrition Assistance Program (SNAP). While Chairman Thompson has insisted he doesn’t intend to cut SNAP, he does want to reverse Biden-era reforms that have increased food aid. The Senate package would leave nutrition funding untouched. Democrats and Republicans also agree on the need to reduce wildfire risk and improve forest health. For example, both parties want to increase the size and scope of the Good Neighbor Authority, which lets federal managers contract with local governments to thin publicly owned forests. The latest extension of the Farm Bill expires on September 30. Senators Urge Affordable Connectivity Program Providers to Continue Supporting Households for an Additional Month Senators Ed Markey (D-MA) and Laphonza Butler (D-CA) – along with a handful of other Senate Democrats – sent a letter to the two largest trade associations representing the wireless/broadband industry urging their member companies to ensure that subscribers to the Affordable Connectivity Program (ACP) continue to receive the full $30 benefit in May. It should be noted that the Federal Communications Commission (FCC) recently announced Attachment A 14 5 that it will only be able to provide ACP subscribers with a $14 benefit in May, rather than the full $30. As Congress works on an extension of ACP funding, the letter urges providers to cover the $16 shortfall. A copy of the letter can be viewed here. Biden Administration Announces that DACA Recipients Will Be Eligible for Obamacare On May 8, the Department of Health and Human Services published a final rule that will open up Affordable.Care.Act coverage to roughly 100,000 Deferred Action for Childhood Arrivals (DACA) recipients who came to the United States as children but do not qualify for government health insurance because they lack legal status. Pursuant to the rule, DACA recipients would qualify for marketplace subsidies if they meet the income guidelines and are not covered by an employer’s plan. The new rule will become effective on November 1, 2024, the beginning of the annual open enrollment period. HUD Announces FY 2024 State and Local Formula Grants and Voucher Reforms Earlier this week, the Department of Housing and Urban Development (HUD) announced $5.5 billion in funding that will go to 1,200 communities. The funding will go through a number of formula grant programs, including the Community Development Block Grant (CDBG) program, the HOME Investment Partnerships Program, the Housing Opportunities for Persons With HIV/AIDS (HOPWA) program, Emergency Solutions Grants (ESG), and the Housing Trust Fund. These grants support a wide range of community needs, including providing flexible resources to build homes, support renters and homeowners, and provide assistance to persons experiencing homelessness and those living with HIV/AIDS. The allocations for each state and locality are available here. In addition to the grant announcement, HUD recently released a final rule making reforms to the Housing Choice Voucher (HCV) tenant-based program and the Project-Based Voucher (PBV) program. According to the department, the reforms are intended to grow the supply of affordable housing. Among other things, the proposal would allow PBV assistance to be paired with manufactured housing; establish local project-specific waiting lists to help families move into units more quickly; codify important tenant protections for families in the areas of inspections and property and contract dispositions; and, ensure families are able to find units in the local rental markets by providing PHAs additional flexibilities to increase rents. Attachment A 15 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:24-1454 Agenda Date:5/20/2024 Agenda #:5. LEGISLATION COMMITTEE Meeting Date: May 20, 2024 Subject:Unfunded and Restricted Funding of Agriculture/Weights & Measures Departments Submitted For: Matt Slattengren Department: Agriculture Referral No: Referral Name: Presenter: Contact: Referral History: As part of the adoption/approval for the Device Registration Fee Ordinance at the March 26, 2024, Board of Supervisors meeting, Supervisor Burgis requested a referral to the Legislation Committee to discuss and/or consider a report on the issue of unfunded mandates by the State as it relates to the device registration fees associated with the Agriculture/Weights & Measures departments. The fiscal impact of the item noted: “Collection of the fees will allow the Department to continue to run this mandated consumer protection program and get closer to meeting the mandated number of inspections per year. The County charges less than the cost of each inspection of each device type because the maximum fees that can be collected are established by state law. Currently the Department collects about $800,000 in fees per year and spends about $1.7 million a year on the program. The increased device fees are estimated to increase the annual collection by $170,000.” Referral Update: See Attachment A. Recommendation(s)/Next Step(s): CONSIDER providing direction on the pursuit of a legislative or budgetary remedy to the matter of unfunded Fiscal Impact (if any): This item relates to the restrictions in state law regarding fees for County Agricultural Commissioner activities. There is a substantial fiscal impact to the County from this matter. CONTRA COSTA COUNTY Printed on 5/15/2024Page 1 of 1 powered by Legistar™16 Unfunded and Restricted Funding of Agriculture/Weights & Measures Departments Problem Statement: State law restricts the ability of local County Agricultural Commissioners from charging fees at the amount necessary to recover actual costs of service. Solution Options: Seek changes in State law. Seek Mandate Reimbursement. Background Government Code section 54985 gives boards of supervisors the ability to charge fees at the amount necessary to recover their costs to enforce any regulation for which the fees are charged. However, Section 54985(c)(4) includes a specific exemption for all County Agricultural Commissioners (CACs) from this section, prohibiting them from charging any fee or changing any fee unless it is explicitly in regulation. Additionally, Section 54985(c)(5) exempts any fees from being charged pursuant to Article 2.1 (commencing with Section12240) of Chapter 2 of Division 5 of the Business and Professions Code (BPC), which prohibits any Weights & Measures Departments (W&MD) from charging or changing any fees that are not in regulation. This limitation cripples Agriculture/Weights & Measures Departments across the state in their ability to obtain funding to cover their costs. Furthermore, the state Department of Measurement Standards (DMS) had nearly all its funding cut around 10 years ago, which means there was no state funding for the counties who were doing the work and no state support for many of these programs. Since then, county W&MDs have been collecting a fee for DMS to keep it operational. CACs receive funding from the California Department of Food and Agriculture (CDFA) for many of their programs, but in most cases not enough to cover the costs, plus we cannot charge any additional fees. One good example of this is our Nursery inspection program. We should be spending more time in this program due to pest pressure which impacts other programs, but the funding and resources are not available. We spend about $45,000 a year on this program and receive an annual contract from the State of about $2,403. California Code of Regulations section 3162 establishes a rating system for agricultural pests. Pests given an “A” rating under this system are considered highly detrimental to agriculture or the environment and CACs are mandated to eradicate them. We get funding and support from CDFA for specific insect pests, but if any other A-rated insects, weeds, or plant diseases are found, CACs need to fund the effort themselves. For example, we have recently detected several infestations of A-rated Mexican Pokeweed in Contra Costa County and have had to eradicate these infestations with no outside financial support. In the past, we have had to eradicate several infestations of A-rated Japanese Dodder with no outside financial support. Attachment A 17 According to the BPC, W&MDs are required to inspect all devices used commercially in the county annually but are only allowed to charge the maximum amount set in regulation. This means we spend over $1.7 million and take in about $800,000 in fees and contracts. Since the fees must be set by state regulation, we must work with lobbyists for different groups who may oppose the fees. These inspections not only protect the public from overcharges, but also protect businesses from others using unfair practices to get ahead in their industry. In FY 2019/2020, county W&MDs spent $51.3 million statewide and received $32.9 million in fees, contracts, and other revenue. Given the great difference in operating costs between counties, it is very challenging to set a statewide regulation that allows for each CAC to recoup its costs to operate mandated programs. Attachment A 18 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:24-1455 Agenda Date:5/20/2024 Agenda #:6. LEGISLATION COMMITTEE Meeting Date: May 20, 2024 Subject:The Taxpayer Protection and Government Accountability Act Submitted For: Legislation Committee Department: County Administrator’s Office Referral No: Referral Name: TPA Presenter: Geoff Neill & Michelle Rubalcava, Nielsen Merksamer Contact: L. DeLaney, 925-655-2057 Referral History: In March 2022, the CSAC Board of Directors voted to oppose Initiative #1935, titled the “Taxpayer Protection and Government Accountability Act,” because it would restrict the ability of the state, counties, other local agencies, and the electorate to approve or collect taxes, fees, and other revenues, and endanger local initiatives that have already been approved by voters. CSAC has developed a set of resources to help educate counties about the measure. These resources include a template resolution, an opposition letter, and an informational item, which are attached. Counties can use these materials to consider adopting a formal opposition position on the measure. Referral Update: See Attachment A. On May 8, the California Supreme Court heard oral argument in the case Legislature of the State of California v. Weber (S281977). The case is a pre-election challenge to a proposed constitutional initiative (the Taxpayer Protection and Government Accountability Act, or “TPA”) that is scheduled to be presented to the voters this November. The TPA would make various changes to the procedures for imposing state and local taxes and fees that would generally make it more difficult to impose those exactions. Of particular interest in the litigation are provisions in TPA that require all state taxes adopted by the Legislature to be approved by the statewide electorate prior to imposition; and a requirement that all local taxes adopted since Jan. 1, 2022 must conform with TPA within one year of TPA’s adoption or they become null and void. The Legislature and the Governor filed a direct petition in the California Supreme Court, alleging that the initiative amounts to a revision of the Constitution that is beyond the scope of the People’s initiative power. CONTRA COSTA COUNTY Printed on 5/15/2024Page 1 of 2 powered by Legistar™19 File #:24-1455 Agenda Date:5/20/2024 Agenda #:6. (Article XVIII of the Calif. Constitution permits the voters to “amend” but not “revise” the Constitution.) The government officials asked the Court to declare the measure unconstitutional and to order that it be withheld from the ballot this November. In particular, oral argument focused on the appropriateness of pre-election, versus post-election, review; whether or not the Court could sever any invalid provisions as opposed to invalidating the entire measure; and whether or not requiring statewide voter approval of all state taxes would be a revision. The case was ordered submitted at the end of argument, and a decision is due within 90 days. Given the deadline for measures to qualify for the ballot is June 27, the State Petitioners have requested expedited consideration of the case. Conventional wisdom is probably that a decision will be rendered on or before the June 27 date. Recommendation(s)/Next Step(s): CONSIDER recommending to the Board of Supervisors an Oppose position on Initiative #1935 on the June 4, 2024 agenda. Fiscal Impact (if any):Initiative #1935, referred to as the “Taxpayer Protection and Government Accountability Act,” would severely restrict the ability of local governments to obtain the revenue needed to deliver core public services and local priorities. Initiative #1935 would impose new standards retroactively on existing laws and measures, endangering upwards of $300 million in revenue already approved by county voters and upwards of $2 billion total for local governments. CONTRA COSTA COUNTY Printed on 5/15/2024Page 2 of 2 powered by Legistar™20 Memo: Ballot Initiative #1935, “Taxpayer Protection and Government Accountability Act,” (TPA Initiative) County Educational Toolkit Background The “Taxpayer Protection and Government Accountability Act,” referred to as “Initiative #1935,” or the “TPA,” would revise the California Constitution to restrict the ability of the state, counties, other local agencies, and the electorate to approve or collect taxes, fees, and other revenues. Collectively, the impacts of the measure would impair essential government functions. The measure would require voter approval of all state taxes, redefining many existing administrative fees as taxes that require voter approval and requiring voters to approve any changes to state taxes imposed by the California Legislature. It would further restrict local fee authority by limiting fee amounts to the “minimum amount necessary” to provide government services, and would require voter approval for local measures such as franchise fees. Its provisions would make it easier to challenge local revenue measures by increasing the burden of proof on local agencies while disallowing an agency’s characterization of a measure from being considered in court. The measure would prohibit county charter amendments that provide for any revenue from being submitted to the electorate. It would also disallow local agencies from placing advisory measures on the same ballot as any general revenue measure and would raise the threshold for voter approval of local revenue measures proposed by initiative to two-thirds. The proposed constitutional initiative is sponsored by the California Business Roundtable, an association composed of executives for the largest corporations in California. However, the measure has been funded primarily by a small few of those member corporations and, in February 2024, several of the association’s members placed an advertisement requesting the sponsors to remove the measure from the ballot. The California Attorney General has titled the measure: “LIMITS ABILITY OF VOTERS AND STATE AND LOCAL GOVERNMENTS TO RAISE REVENUES FOR GOVERNMENT SERVICES. INITIATIVE CONSTITUTIONAL AMENDMENT.” The official summary is as follows: “For new or increased state taxes currently enacted by two-thirds vote of Legislature, also requires statewide election and majority voter approval. Limits voters’ ability to Attachment A 21 pass voter-proposed local special taxes by raising vote requirement to two-thirds. Eliminates voters’ ability to advise how to spend revenues from proposed general tax on the same ballot as the proposed tax. Expands definition of “taxes” to include certain regulatory fees, broadening application of tax approval requirements. Requires Legislature or local governing body set certain other fees. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Lower annual state and local revenues, potentially substantially lower, depending on future actions of the Legislature, local governing bodies, voters, and the courts.” The measure would apply retroactively to any local measure or state law passed since January 1, 2022, allowing only a twelve-month period for the state or local governments to re-ratify the measures. CSAC Efforts Related to the Measure The CSAC Board of Directors voted to oppose the measure in March 2022. In September 2023, Governor Gavin Newsom petitioned the California Supreme Court to review the measure, asserting that it would be a revision of the California Constitution, rather than an amendment, and therefore would require a constitutional convention to make the changes sought by the measure’s sponsors. The Governor also asserted the measure would impair essential government functions. In January 2024, CSAC, as part of a coalition of local government entities and associations, filed an amicus brief in support of the Governor and Legislature in their petition to the California Supreme Court to deem the California Business Roundtable’s ballot measure as a constitutional revision that would impair essential government functions, and therefore ineligible for the November 2024 ballot. Analysis Under current law, local revenue authority is limited by both statute and several voter-approved constitutional provisions, including those added by Proposition 13 (1978), Proposition 218 (1996), and Proposition 26 (2010). Due to these restrictions, counties have become more dependent on state and federal funding. These restrictions, combined with other factors, cause the taxes counties rely on for general revenues not to keep pace with population and economic growth. Changes under Ballot Initiative The purpose of the ballot measure is to make it more difficult for counties, cities, schools, special districts, and the state to raise revenue by any means. It places new and increased restrictions on every manner of revenue measure and narrows exceptions to its most onerous requirements. Its provisions are so broad that while the proponents cite specific examples they are targeting for change, the measure would no doubt have many unintended consequences. Attachment A 22 The effect will be to increase county costs, reduce tax and fee revenue for counties, subject de rigueur charges such as franchise fees to voter approval requirements, and open more government actions to legal challenges while simultaneously making those challenges more difficult to defend against. Further, as is the case with many ballot measures, it would write into the California Constitution contradictory and confusing language that cannot be changed or clarified without another future ballot measure that receives voter approval. The fundamental provision of the proposed initiative would be to designate every levy, charge, or exaction of any kind imposed by the state or a local agency as either a tax or an “exempt charge.” Every revenue measure not defined as an exempt charge would be subject to voter approval requirements, some of which the initiative newly imposes or increases. The list of exempt charges includes charges for the actual cost of a government service (such as utilities), charges for the regulatory costs of issuing licenses and performing related inspections and audits, charges for the lease or sale of government property, fines and penalties to punish violations of law, charges for tourism promotion, health care charges to increase Medi-Cal reimbursement rates, and, for local agencies, charges imposed as a condition of property development. As proposed, every state and local revenue measure not defined as an exempt charge would need to be submitted to the voters for approval. Those measures would be required to include in both the title and summary and the ballot label the type and amount or rate of the tax, the duration of the tax, and the use of the revenue derived from the tax. In the case of local general taxes, the phrase “for general government use” would be required and it would be prohibited to include an advisory measure on the same ballot to determine how the electorate would like to see those revenues used. Local voter initiatives that impose special taxes are currently subject to lower voting thresholds than those initiated by county and city governing boards. This measure would increase those thresholds from a majority vote to two-thirds. This initiative would retroactively cancel other revenue measures passed by voters or approved between January 1, 2022, and the time this initiative goes into effect, if they do not comply with this measure’s provisions, even if they complied with all laws in effect at the time they passed. The proposed initiative would give those cancelled revenue measures twelve months to re-comply. However, local tax measures can only be put to voters at regular elections where governing board members can also be elected, unless the governing board unanimously calls a special election, and no regular elections would take place in the twelve months after the initiative would take effect. The initiative reduces counties’ home rule authority by prohibiting certain types of amendments to county charters from even appearing before the voters. Whether they are proposed by the Board of Supervisors or by voters themselves, any charter amendment that provides for the imposition, extension, or increase of a tax, fee, charge, or exaction of any kind whatsoever would be prohibited. Attachment A 23 One provision of the measure allows fines and penalties to be imposed by the judicial branch of government or imposed by a local administrative enforcement agency to punish violations of law, without voter approval. However, another section of the measure says that, notwithstanding any other provision of the Constitution, only the governing body of a local government acting by ordinance, or an elector exercising the initiative power, can impose any kind of charge without voter approval. The measure specifically prohibits any tax or fee regulating or related to vehicle miles traveled imposed as a condition of property development or occupancy. For most local fees, the measure would prohibit them from exceeding the “actual cost” and defines actual cost to “the minimum amount necessary,” exposing counties to litigation and judicial second guessing about whether the county could have chosen a lower level of service or whether it could have achieved the result at a lower cost by other means. The proposed measure would increase the burden of proof on local agencies to prove that a revenue measure is not subject to voter approval requirements—and that the amount of the charge is reasonable and does not exceed the “actual cost,” or “minimum amount necessary”—from a preponderance of evidence to clear and convincing evidence. Furthermore, the measure prohibits a court from considering how a local agency describes, or characterizes, a revenue measure in making its determination, whereas the use of the funds would be required to be a factor in that determination. To give an example of a normal county process that would be impacted by the proposed measure, consider a county’s sale of a parcel of land, which falls directly under one of the categories of exempt charge, the one defined in proposed subparagraph (3) of paragraph (j) of Article XIII C Section 1, “a reasonable charge for…the purchase...of local government property.” To impose an exempt charge under the terms of the initiative, the governing body may be required to pass an ordinance specifying the amount of the exempt charge, in this case, the amount charged to purchase the property. If anyone sued the county contesting whether the sale was an exempt charge or should instead have been treated as a tax, under the terms of the proposed initiative the court would be explicitly disallowed from factoring in the county’s description of the charge “as being paid in exchange for a[n]…asset.” Instead, the court would be required to consider as a factor “the use of revenue derived from the…charge.” So while board members might think the county could use the proceeds from the sale of property for general purposes, in order to show by clear and convincing evidence that the charge was not a tax, it would need to prove to the court both that the amount of the charge was reasonable and “that the amount charged does not exceed the actual cost of providing the…product to the payor,” with the “actual cost” defined as “the minimum amount necessary to reimburse the government for the cost of providing the…product to the payor…where the amount charged is not used by the government for any purpose other than reimbursing that cost.” So, in selling, renting, or Attachment A 24 leasing property, a county would be limited to the county’s cost of providing the parcel to the buyer, instead of selling at market rate or to the person offering the highest amount. At the state level, the measure would require all state taxes to receive voter approval, in addition to the current requirement for two-thirds approval of both houses of the Legislature, effectively revoking the Legislature’s powers to levy new or increased taxes. Any increase or imposition of any non-tax charge, however minor, would require approval of the Legislature if it results in any taxpayer paying a higher amount. This requirement would apply to everything from bar exam fees to State Fair ticket prices to any charge for a map, shirt, or deck of cards for sale at a state park. And due to the restrictions on the use of revenue from exempt charges, revenue from map, shirt, and playing card sales at state parks could not be used to support the maintenance of the park, but only to reimburse the minimum amount necessary to provide that map, sticker, or deck of cards to the purchaser. On the whole, the measure will limit local revenue, imperil existing revenue and laws, subject local governments to the risk of litigation, and limit the ability of governments to defend themselves in court. What Can Counties Do? CSAC encourages counties to consider taking an official position in opposition to Initiative #1935. While Boards of Supervisors can take official positions on ballot initiatives, county supervisors and county employees cannot use public resources to engage in advocacy related to ballot campaigns. Counties can, however, educate their constituents about the impacts propositions would have on the county and their community, despite whether they have taken a position on a ballot initiative. In fact, counties are well-positioned to provide information on the impacts of ballot measures in their local communities. The line between education and advocacy can be difficult to differentiate at times, so CSAC staff encourages counties refer to helpful resources such as the Institute for Local Government’s papers and primers on ballot measure activities. Staff also highly recommends, especially when there is any doubt about a particular activity or communication, to consult with county counsel. Attachments 1) Full text of Ballot Initiative 2) Title and Summary 3) Fiscal Impact Estimate Report CSAC Staff Contact For additional information, please contact Eric Lawyer, Legislative Advocate, California State Association of Counties (elawyer@counties.org or (916) 767-9403). Attachment A 25 DATE ADDRESSEES (Addressed to Assembly Member(s) and Senator(s) representing the county) RE: Taxpayer Protection and Government Accountability Act (Initiative #1935) – Notice of Opposition Dear Assembly Member(s) and Senator(s), On behalf of the COUNTY Board of Supervisors, I write to express our opposition to Initiative #1935, titled the “Taxpayer Protection and Government Accountability Act” by its sponsors, which would revise the California Constitution to restrict the ability of the state, local governments, and the electorate to approve or collect taxes, fees, and other revenues and harm the ability for local governments to deliver vital public services. The measure would revise and recast the California Constitution by requiring voter approval of all state taxes, restrict local fee authority by limiting it to the “minimum amount necessary” to provide a service, and invite litigation due to the many unclear and conflicting provisions included in the measure, while also restricting the ability of local governments from defending themselves by disallowing an agency’s characterization of a measure from being considered in court. While the measure is long, complicated, and includes several unclear or conflicting provisions, at its core the measure seeks to accomplish three objectives: raise vote requirements and other criteria for approval of taxes, redefine many fees and charges as taxes, and limit fees to only the “minimum amount necessary,” to provide a service. First, Initiative #1935 would impose several strict approval requirements for state and local taxes, including those sought by both governing bodies and the electorate. The measure limits proposed tax increases to be placed before voters only during a regularly scheduled election, unless a legislative body unanimously agrees to hold a special emergency election. The measure would also eliminate the ability of local governments to include advisory questions on the same ballot as general tax measures; disallow the consideration of any charter amendment by voters which provides for the imposition, extension, or increase of a tax; and require special taxes proposed by citizens initiative to receive approval by two-thirds of voters. Second, the measure would make sweeping changes to the definition of government fees, which are already held to a standard to not exceed the reasonable costs of providing a service. Local fee revenue is used to fund essential services, including fire, police, public works, and parks and recreation. Initiative #1935 would redefine many existing fees as taxes, requiring voter approval for many charges that are imposed for the benefit granted to even a single payer, but not granted to those not charged. Finally, the measure would impose a new standard on fees, limiting them to only the “minimum amount necessary,” to provide a service. This provision would invite extreme legal scrutiny of regular government decisions, costing governments and their taxpayers significant legal fees and endangering longstanding sources of revenue for counties and all levels of government. In addition to revising the legal definition of a fee, the measure would also restrict the ability of local governments to make their case in courts by subjecting governments to the heightened “clear and convincing” evidence standard and prohibiting courts from considering how a local agency characterizes a revenue measure. The measure would apply its new standards retroactively, subjecting over 100 local measures approved by voters since January 1, 2022, to legal peril, requiring voters to ratify those measure again within twelve months, during a timeframe in which a special election must be called to even consider those measures. For COUNTY, this means SPECIFIC COUNTY MEASURE IMPERILED, which would raise $AMOUNT annually for PURPOSE. Attachment A 26 On the whole, Initiative #1935 would impair essential functions of all levels of government. While the measure will undoubtedly threaten the ability of local governments to raise revenue, the true dangers of this measure are reflected in the services funded by those revenue: law enforcement, fire protection, parks and recreation, health care services, addressing the homelessness crisis, emergency response, and all the services that support our communities. For these reasons, the COUNTY Board of Supervisors opposes Initiative #1935, referred to as the “Taxpayer Protection and Government Accountability Act.” Should you have any questions or concerns regarding our position, please contact CONTACT INFO. Sincerely, Attachment A 27 Sample Resolution to Oppose Initiative #1935 WHEREAS, counties deliver core public services including health care, homeless services, foster care, emergency response, fire protection, and law enforcement; and WHEREAS, counties rely on limited sources of revenue to support those services, which have been restricted by passage of voter-approved constitutional amendments and state laws over the past several decades; and WHEREAS, Initiative #1935, referred to as the “Taxpayer Protection and Government Accountability Act,” would severely restrict the ability of local governments to obtain the revenue needed to deliver core public services and local priorities; and WHEREAS, Initiative #1935 would likely subject county governments to expensive litigation and restrict the ability of local governments to defend themselves; and WHEREAS, Initiative #1935 would restrict the ability of counties to seek the opinions of their voters by eliminating the ability for local governments to place advisory measures on the same ballot as general tax provisions; and WHEREAS, Initiative #1935 would prohibit county charter amendments that provide for any revenue from being submitted to the electorate; and WHEREAS, Initiative #1935 would impose new standards retroactively on existing laws and measures, endangering upwards of $300 million in revenue already approved by county voters and upwards of $2 billion total for local governments; and WHEREAS, Initiative #1935 would specifically endanger county measure X [name], which would raise [amount] annually to [purpose]; and WHEREAS, by making the changes described above, Initiative #1935 would impair essential government functions; and THEREFORE BE IT RESOLVED, that the County of [NAME] hereby opposes Initiative #1935, known as the “Taxpayer Protection and Government Accountability Act,”; and THEREFORE BE IT FURTHER RESOLVED, that the County of [NAME] can be listed as a member of the No on Initiative #1935 coalition, a diverse coalition of local governments, public safety organizations, business, labor, and other organizations throughout the state. PASSED, APPROVED, AND ADOPTED this day _____ of _____, 2024. Attachment A 28 March 19, 2024 Assembly Democrats California State Assembly State Capitol, CA 95814 RE: OPPOSE THE TAXPAYER DECEPTION ACT (INITIATIVE 1935) - PLEASE ADD YOUR NAME TODAY Dear Assembly Democrats: California’s educators, healthcare workers, firefighters, construction trades, community empowerment organizations and local governments respectfully request you endorse a NO vote on the so-called “Taxpayer Protection and Government Accountability Act.” This initiative, which is eligible to appear before the voters in November, is a dangerous and existential threat to California. The more aptly named Taxpayer Deception Act is sponsored by the California Business Roundtable, the California Business Properties Association and the Howard Jarvis Attachment A 29 Taxpayers Association and funded by billion-dollar real estate interests Kilroy Realty, Douglas Emmett Properties, Blackstone, Hudson Pacific and Shorenstein. Deceitfully veiled as “reform,” these corporations want to prevent any future effort to ensure they pay their fair share. The Taxpayer Deception Act is not only an unconstitutional revision that fundamentally alters the structure of our government, but erodes the very foundations of our democracy and prevents the delivery of essential services. The ballot measure eliminates the Legislature’s taxing authority and ability to effectively balance the budget. It would cut billions of dollars in existing funding and threaten education, homelessness services and all general fund programs.The measure would also overturn recent legislative wins, including new laws funding gun violence prevention, mental health, paid family leave and disability insurance, and environmental programs. Posing the greatest threat to voters’ rights in recent history, the ballot measure is retroactive to January 1, 2022, invalidating more than 100 local ballot measures already approved by voters just because the funders don’t want to pay a transfer tax contained in one local measure. The Taxpayer Deception Act also empowers just one-third of voters to block local funding measures placed on the ballot by voters over the will of the majority. California’s continued success as the 5 th largest economy in the world, its reputation as the nation’s hub for innovation, and the quality of life and wellbeing of its 40 million residents depends on the ability of state and local governments to provide important public services. The Taxpayer Deception Act would reverse decades of progress achieved through a time-honored and battle-tested democratic process. We urge you to add your name today at TaxpayerDeceptionAct.com. Join the growing coalition of elected officials, organizations and leaders who strongly oppose this reckless initiative. Thank you, AAPIs For Civic Empowerment Alliance of Californians for Community Empowerment (ACCE) Action ACLU of Southern California AFSCME California Asian Pacific Environmental Network Action California Black Power Network Attachment A 30 California Association of Counties (CSAC) California Association of Special Districts California Calls Catalyst California California Carpenters California Faculty Association California Federation of Teachers California Labor Federation California Professional Firefighters California School Employees Association California Teachers Association Coalition for Humane Immigrant Rights (CHIRLA) Grace - End Child Poverty in California Housing California League of California Cities NextGen California Northern California Regional Council of Carpenters OC Action PICO California PolicyLink Power California Action San Diego Organizing Project SEIU California Southwest Regional Council of Carpenters State Building & Construction Trades Council Of California Paid for by Alliance for a Better California, sponsored by Working Families and Labor Organizations Committee’s Top Funders: Northern California Regional Council of Carpenters Service Employees International Union Local 1000 SEIU California State Council Attachment A 31 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:24-1456 Agenda Date:5/20/2024 Agenda #:7. LEGISLATION COMMITTEE Meeting Date: May 20, 2024 Subject:FY 24-25 State Budget and State Bills of Interest Submitted For: Legislation Committee Department: County Administrator’s Office Referral No: 2024-03 Referral Name: State Budget and Bills of Interest Presenter: Geoff Neill and Michelle Rubalcava, Nielsen Merksamer Contact: L. DeLaney, 925-655-2057 Referral History: The Legislation Committee regularly receives reports on the State Budget and bills of interest to the County, providing direction and/or input as necessary. Referral Update: See Attachments A, B, and C. Recommendation(s)/Next Step(s): RECEIVE the report and provide direction and/or input to County staff and the County lobbyists. Fiscal Impact (if any): There may be a significant fiscal impact to the County from the adoption of the state’s FY 24-25 budget. CONTRA COSTA COUNTY Printed on 5/15/2024Page 1 of 1 powered by Legistar™32 FY 24 -25 State Budget Update On Friday, May 10, Governor Newsom released a high-level summary of his May Revision budget proposal. More details followed this week. The Governor now pegs the budget deficit at $27.6 billion, after accounting for the early action budget solutions ($17.3 billion) and further revenue erosion ($7.0 billion). In addition to the budget year deficit, the Governor estimates the following fiscal year deficit (2025-26) at $28.4 billion, and since a number of the 2024-25 deficit solutions are one-time in nature, he is also proposing one-time and ongoing budget solutions for FY 2025-26. The Governor did not retract any of his January proposals but, rather, added proposals for more cuts, fund shifts, use of reserves, revenue, and borrowing. Only a few proposals were detailed. By category, he is proposing the following additional solutions: 2024-25 -$4.2 billion of reserves -$3.0 billion of “efficiencies” (across-the-board cuts of 7.95% and eliminating vacant positions) -$15.2 billion of reductions ($12.7 billion one-time, $2.5 billion ongoing) -$14.8 billion of shifts (to cap and trade and other funds) and pauses to planned expansions (like child care slots) -$7.4 billion of revenues and borrowing 2025-26 (many are a continuation of 2024-25 solutions) -$8.9 billion of reserves -$3.6 billion of efficiencies -$11.0 billion of reductions --$2.5 billion of shifts and pauses to planned expansions -$7.4 billion of revenues and borrowing The Governor also raised the idea of reforming Prop. 2 to provide additional reserves for this year’s revenue declines and talked about speeding up the changes to the homeowners’ insurance market. For more details, see the following resources: -Governor’s fact sheet: Attachment B -CSAC’s Budget Action Bulletin: Attachment C -Watch Governor’s 2-hour press conference: https://www.youtube.com/watch?v=V1IHB4c6Bgo -Official summary: https://ebudget.ca.gov/FullBudgetSummary.pdf -Full detail: https://ebudget.ca.gov/ Attachment A 33 State Bills of Interest The bills that Contra Costa County are actively tracking are included in Attachment D. The County’s lobbyists will provide an update of the fate of bills on the Suspense File that were considered by the Appropriations Committees. The Appropriations Committees have until May 17 to pass bills, and the Legislature has one week after that to pass bills out of their house of origin. Two bills were significantly amended recently to deal with housing elements and RHNA: - AB 3093 (Ward) – This bill, which is sponsored by the Governor, would require cities and counties to include planning for acutely low-income and extremely low-income households in their housing elements, among other things. - AB 2675 (Low) – This bill would allow the voluntary transfer of RHNA allocations, also allowing payments between the transferring jurisdictions. Signatures Submitted for Criminal Justice Initiative The coalition working to qualify an initiative to increase penalties for certain retail theft and drug crimes announced on April 18 that they have submitted more than enough signatures. As summarized by the AP: “The ballot measure would create harsher penalties for repeat shoplifters and fentanyl dealers. Shoplifters would be charged with a felony, regardless of the amount stolen, if they have at least two prior theft convictions. It also would create a new drug court treatment program for those with multiple drug possession convictions, among other things.” As with the anti-tax initiative, assuming enough signatures are verified, the initiative would be eligible for the November ballot unless withdrawn or replaced. Attachment A 34 GOVERNOR NEWSOM’S REVISED 2024-25 STATE BUDGET A Balanced Budget that Cuts Spending, Makes Government Leaner, and Preserves Core Services — Without Proposing New Taxes on Hardworking Californians KEY TAKEAWAYS: A BALANCED BUDGET OVER TWO YEARS The Governor is solving two years of budget problems in a single budget,tightening the state’s belt to get the budget back to normal after the tumultuous years of the COVID-19 pandemic. By addressing the shortfall for this budget year —and next year —the Governor is eliminating the 2024-25 deficit and eliminating a projected deficit for the 2025-26 budget year that is $27.6 billion (after taking an early budget action) and $28.4 billion respectively. This approach will set California on a sound and fiscally responsible path. By making tough and responsible decisions now, the state is projected to have a positive operating reserve balance over the next two fiscal years. CUTTING SPENDING, MAKING GOVERNMENT LEANER Governor Newsom’s revised balanced state budget cuts one-time spending by $19.1 billion and ongoing spending by $13.7 billion through 2025-26, including through a nearly 8% cut to state operations and a targeted elimination of 10,000 unfilled state positions, improving government efficiency and reducing non-essential spending — without raising taxes on individuals or proposing state worker furloughs. The budget makes government more efficient, leaner, and modern — saving costs by streamlining procurement, cutting bureaucratic red tape, and reducing redundancies. PRESERVING CORE SERVICES & SAFETY NETS The budget maintains service levels for many key housing, food, health care, and other assistance programs that Californians rely on while addressing the deficit by pausing the expansion of certain programs and decreasing numerous recent one-time and ongoing investments. NO NEW TAXES & MORE RAINY DAY SAVINGS Governor Newsom is balancing the budget by getting state spending under control — cutting costs, not proposing new taxes on hardworking Californians and small businesses — and reducing the reliance on the state’s “Rainy Day” reserves this year. Attachment B 35 HOW WE GOT HERE: The budget shortfall is rooted in two separate but related developments over the past two years: #1: REVENUE PROJECTIONS California’s revenue is highly dependent on personal income taxes, including taxing capital gains — the taxing of profits when individuals buy or sell stocks. In 2021, the stock market (especially tech stocks important to California's economy) boomed and the state collected significant tax revenue. Following a 2022 market downturn, the state collected significantly less taxes than projected. And while the market bounced back by late 2023, the state continued to collect less tax revenue than projected in part due to something called “capital loss carryover,” which allows losses from previous years to reduce how much an individual is taxed. #2: IRS DELAYS Under typical circumstances, market declines would become evident as tax receipts were received, but following extreme winter storms across the state in 2023, the Internal Revenue Service (IRS) extended the tax filing deadline for 99% of all California taxpayers. The delayed tax receipts, coupled with the ways the pandemic upset economic indicators, made it difficult to accurately predict revenues. Once processed after the federal delay to November 16, key tax receipts were 22% lower than projected. Without a delay, the revenue drop would have been incorporated into last year’s budget and the shortfall this year would be significantly smaller. BIGGER PICTURE: LONG-STANDING VOLATILITY California’s revenues are highly dependent on personal income tax, including capital gains, which significantly fluctuate based on economic and stock market conditions. As a result, California’s budget conditions, relying on fluctuating revenue, have always been volatile — across both Democrat and Republican administrations. CALIFORNIA REMAINS STRONG The Governor’s revised balanced budget sets the state up for continued economic success. California’s economy remains the 5th largest economy in the world and for the first time in years, the state’s population is increasing and tourism spending recently experienced a record high. California is #1 in the nation for new business starts, #1 for access to venture capital funding, and the #1 state for manufacturing,high-tech, and agriculture. 2 Attachment B 36 GOVERNOR’S 2024-25 MAY REVISION BUDGET May 14, 2024 TO: CSAC Board of Directors County Administrative Officers FROM: Graham Knaus, CSAC Chief Executive Officer Jacqueline Wong-Hernandez, CSAC Chief Policy Officer RE: Governor’s 2024-25 May Revision Budget Proposal As expected, the Governor’s 2024-25 May Revision budget proposal grapples with an even larger gap between projected and actual revenues, increasing the state’s budget problem by an additional $7 billion. What was unexpected, however, was the sparse budgetary detail delivered piecemeal between the lengthy press conference on Friday, May 10 and the statutory deadline of Tuesday, May 14. In that window of time, we learned that the Administration’s proposed cuts, if enacted, would severely impact counties’ ability to deliver on services and programs that Californian’s rely upon: the social safety net, housing, homelessness services, public safety, and infrastructure. Given the magnitude of the budget problem, it is important to acknowledge that none of the choices before lawmakers are easy. County leaders, however, are all too familiar with what to do when faced with a funding shortfall; make tough decisions on spending cuts while ensuring that the most critical priorities are maintained. As the state and county budgets are woven together, county leaders know that the state will need county expertise and ground truth from their primary intergovernmental partner to balance the budget in a manner that meets our collective responsibility for the safety and wellbeing of Californians. Changes in budget committee leadership in 2024 in both houses and the general climate in Sacramento shape the upcoming conversations as we prepare to work closely with the Administration and legislative leadership to right size the budget plan to preserve core county services and county workforce. Foremost, the Legislature faces the first truly difficult year for budget deliberations in more than a decade, after a prolonged period of economic recovery following the height of the Great Recession, and there are few lawmakers with experience facing statewide fiscal crises. Amidst the whirlwind of anxiety and handwringing over the size of the state’s budget deficit, Governor Newsom and legislative leadership introduced in mid-March what they have labeled a package of “early action” budget-balancing solutions. By early April, Governor Newsom, Senate President pro Tempore McGuire, and Assembly Speaker Rivas had agreed to $17.3 billion worth of early budget actions to shrink the budget shortfall before the release of the May Revision to make future budget-balancing negotiations “more manageable.” This package was not, however, composed of many tough decisions necessary to forge a path to a prudent and realistic budget that lives within our means but does not eliminate crucial services. Rather, the majority of the Attachment C 37 May 14, 2024 Page 2 of 30 $17.3 billion early action budget package included drawing upon $12.2 billion in reserves from the Budget Stabilization Account – the voter-created “rainy day fund.” Thus, the early action package of budget-balancing solutions doesn’t soften the sting of the remaining $27.6 billion 2024-25 budget shortfall and $28.4 billion 2025-26 budget shortfall. It’s also worth noting that this projected deficit still relies on the Legislature agreeing to reduce K-12 education funding in future years by counting money allocated to schools in 2022-23 and 2023- 24 toward future years’ Proposition 98 obligations. Acceptance of that proposal is built into the Administration’s revenue assumptions; any reduction or rejection of that plan would result in a larger budget problem in future years. In the coming weeks, the budget negotiations will begin in earnest, with the tight constitutional deadline for the Legislature to pass the budget bills by June 15. Budget committees and their subcommittees in the Assembly and Senate will hold hearings to review the Governor’s May Revision budget proposals and craft the legislative vehicles that will eventually become law. As required by the State Constitution, the budget chair in each house of the California Legislature introduced the Governor’s proposed budget bill in January (AB 1812 and SB 917). These bills will be amended to reflect the proposed revisions to the 2024-25 budget announced this week. As county leaders, now is the time to make your community's voice heard by providing written comments or in-person testimony directly to these committees. We also encourage you to contact legislative staff and officials from your region to share the county perspective and your own budget priorities and areas of concern. Your CSAC advocacy team has been working tirelessly for months to shape this year’s budget. However, we are stronger together and by making our collective voices heard during the coming weeks we can help craft a budget that serves all of our communities. We look forward to providing you updates, advocacy tools and analysis as the budget process evolves over the coming days. The following pages provide statewide revenue and expenditure summary charts as well as specific budget proposals by policy area. For more detail on these and other items of importance, see the following policy sections below or contact CSAC legislative staff. If you have questions regarding the Budget Action Bulletin, please e-mail Jessica Sankus, CSAC Principal and Fiscal Policy Analyst, at jsankus@counties.org. Attachment C 38 May 14, 2024 Page 3 of 30 Budget Problem at the May Revision Governor’s January 2024-25 Budget $37.9 billion Increased Shortfall Since January $7.0 billion Early Budget Solutions Package (April 2024) -$17.3 billion Remaining Budget Problem as of 2024-25 May Revision $27.6 billion 2024-25 May Revision General Fund Budget Summary (Dollars in Millions) 2023-24 2024-25 Prior Year Balance $46,260 $9,726 Revenue and Transfers $189,354 $205,249 Total Resources Available $235,614 $214,975 Non-Proposition 98 Expenditures $153,450 $124,368 Proposition 98 Expenditures $72,438 $76,606 Total Expenditures $225,888 $200,974 Fund Balance $9,726 $14,001 Reserve for Liquidation of Encumbrances $10,569 $10,569 Special Fund for Economic Uncertainties -$843 $3,432 Public School System Stabilization Account $2,590 - Safety Net Reserve $900 - Budget Stabilization Account/Rainy Day Fund $22,555 $19,429 Attachment C 39 May 14, 2024 Page 4 of 30 General Fund Expenditures by Agency – Year-over-Year Change (Dollars in Millions) 2024-25 May Revision Total State Expenditures by Agency (Dollars in Millions) Change from 2023-24 2023-24 2024-25 $ Change % Change Legislative, Judicial, Executive $12,704 $7,582 -$5,122 -40.3% Business, Consumer Services & Housing $2,868 $631 -$2,237 -78.0% Transportation $1,041 $554 -$487 -46.8% Natural Resources $11,686 $5,410 -$6,276 -53.7% Environmental Protection $2,333 $624 -$1,709 -73.3% Health and Human Services $73,622 $70,194 -$3,428 -4.7% Corrections and Rehabilitation $15,312 $14,174 -$1,138 -7.4% K-12 Education $73,739 $76,323 $2,584 3.5% Higher Education $21,635 $21,830 $195 0.9% Labor and Workforce Development $1,248 $844 -$404 -32.4% Government Operations $4,770 $2,540 -$2,230 -46.8% General Government: Non-Agency Departments $2,770 $1,355 -$1,415 -51.1% Tax Relief/Local Government $595 $579 -$16 2.7% Statewide Expenditures $1,565 -$1,666 -$3,231 -206.5% TOTAL $225,888 $200,974 -$24,914 -11.0% General Fund Special Funds Bond Funds Total Legislative, Judicial, Executive $7,582 $5,168 $262 $13,012 Business, Consumer Services & Housing $631 $1,341 $538 $2,510 Transportation $554 $16,665 $86 $17,305 Natural Resources $5,410 $3,040 $516 $8,967 Environmental Protection $624 $4,723 $11 $5,358 Health and Human Services $70,194 $40,452 $10 $110,657 Corrections and Rehabilitation $14,174 $4,001 - $18,175 K-12 Education $76,323 $123 $16 $76,462 Higher Education $21,830 $109 $599 $22,538 Labor and Workforce Development $844 $1,163 - $2,007 Government Operations $2,540 $406 - $2,946 Non-Agency Departments $1,355 $1,989 $2 $3,346 Tax Relief/Local Government $579 $3,626 - $4,205 Statewide Expenditures -$1,666 $2,333 $3 $670 TOTAL $200,974 $85,140 $2,043 $288,157 Attachment C 40 May 14, 2024 Page 5 of 30 General Fund Revenue Sources (Dollars in Millions) Revenue Source 2023-24 2024-25 $ Change % Change Personal Income Tax $111,203 $116,304 $5,101 4.6% Sales and Use Tax $33,320 $34,045 $725 2.2% Corporation Tax $33,282 $37,759 $4,477 13.5% Insurance Tax $3,905 $4,016 $111 2.8% Alcoholic Beverage Taxes and Fees $417 $422 $5 1.2% Cigarette Tax $43 $41 -$2 -4.7% Motor Vehicle Fees $46 $46 $0 0.0% Other $7,985 $9,490 $1,505 18.8% Subtotal $190,201 $202,123 $11,922 6.3% Transfer to the Budget Stabilization Account/Rainy Day Fund -$847 $3,126 $3,973 469.1% Total $189,354 $205,249 $15,895 8.4% 2024-25 Revenue Sources (Dollars in Millions) Revenue Source General Fund Special Funds Total Change from 2023-24 Personal Income Tax $116,304 $2,923 $119,227 $5,404 Sales and Use Tax $34,045 $15,665 $49,710 $989 Corporation Tax $37,759 - $37,759 $4,477 Highway Users Taxes - $9,475 $9,475 $159 Insurance Tax $4,016 - $4,016 $111 Alcoholic Beverage Taxes and Fees $422 - $422 $5 Cigarette Tax $41 $1,390 $1,431 -$42 Motor Vehicle Fees $46 $12,432 $12,478 $448 Other $9,490 $34,748 $44,238 -$2,903 Subtotal $202,123 $76,633 $278,756 $8,648 Transfer to Rainy Day Fund $3,126 -$3,126 - - TOTAL $205,249 $73,507 $278,756 $8,648 Attachment C 41 May 14, 2024 Page 6 of 30 “Big Three” Tax Revenue The Department of Finance estimates that the budget shortfall has grown by roughly $7 billion since the release of the January Budget proposal, adding to the $37.9 billion shortfall estimated by the Department of Finance in January. The primary reason for the additional shortfall is due to weaker-than-expected cash receipts for 2022-23 and 2023-24, with each of the “big three” revenue sources falling $10.5 billion below earlier projections collectively. Specifically, sales and use tax revenue is $2.3 billion lower, personal income tax revenue is $2.4 billion lower, and corporation tax revenue is $5.8 billion lower. Economic Outlook and Future Revenue Estimates The state’s fiscal condition, and performance of California’s economy, relies on a robust mix of stock market performance, strong labor markets, and a healthy demand for goods and services. Despite a significant state budget problem, and some experts questioning whether the state experienced a recession for periods in 2023, the May Revision does not predict a recession in the state’s near future. Nonetheless, the state faces many challenges in improving the vibrancy of its economy, including persistent inflation, labor force participation, and high housing and energy costs. CSAC characterized the economic outlook shared in the January Budget proposal as mixed signals, with some cautious optimism tempered with uneven economic futures. Due to unrelenting inflation and underperforming revenue receipts in 2022-23 and 2023-24 than projected, the fiscal condition has worsened since the January Budget proposal. Because of the state’s reliance on personal income tax revenue for an outsized portion of its budget and, by extension, capital gains tax revenue, our fiscal condition relies heavily on the performance of financial investments. Persistent inflation continues to be a drag on economic conditions and, therefore, the fiscal health of our state. The underperformance of the state’s expected sales and use tax revenue is reflected locally. In the fourth quarter of 2023, typically the best quarter for sales and use tax revenue driven by holiday consumer demand, 41 counties generated less sales and use tax revenue compared to the same window of time in 2022. These receipts are not surprising considering overall consumer sentiment, which includes fatigue and frustration with the stubbornly high cost of everyday essentials. According to the Public Policy Institute of California’s most recent statewide survey, “about six in ten Californians believe the state will have bad times financially during the next 12 months” and “strong majorities continue to say they are less comfortable making a major purchase and other household purchases compared to six months ago.” Another factor compounding the diminishment of sales tax revenue is the continuing shift in consumer spending from goods to services, of which virtually all are exempt from sales and use tax. Looking forward, sales and use tax revenues are expected to increase statewide in 2024-25 by only 1.8% on average. The labor market is continuing the trend of “normalizing,” since the COVID-19 pandemic and shows signs of slow, steady growth in some areas, and some difficulties in other areas. The workforce growth remains relatively strong, with recent growth exceeding pre-pandemic growth. While the January Budget proposal projected that the state’s unemployment rate would rise to 5.2% by 2025, the rate is already up to 5.3% through March 2024, exceeding the national average REVENUE OUTLOOK Attachment C 42 May 14, 2024 Page 7 of 30 of 3.8%. This rise is attributed largely to growth in the workforce and not to layoffs of currently employed workers. The “boom and bust” nature of our state’s revenue is tied not only to market performance, but compensation for our workforce, particularly for higher wage earners. The administration reports that wages grew 4.3% in 2023 after a 0.7% contraction the year prior and are expected to remain around the same level for this year and next. Total wages and salaries are expected to grow by 4.5% over the next few years, however the pace and extent of that growth, like much of our economy and fiscal condition, will rely in large part on inflation and interest rates and other factors outside of the control of our state and its policymakers. The technology sector, long a source of the more highly compensated members of our state’s workforce, is expected to add fewer jobs in 2024 than it did last year, which could be a further limit on growth. The information sector, another sector with some of the highest earners in the state, also saw a decline in employment, but experienced strong average wage growth. Over the next few years, the state’s economy is expected to remain in a slow growth state until inflation is tamed and interest rates are reduced, neither of which can be relied upon. Housing and energy costs remain significant drags on taming inflation and have declined slower than projected by the administration. Global conflict, upcoming federal elections, and pending ballot measures add to the uncertainty faced by our state and its communities. Attachment C 43 May 14, 2024 Page 8 of 30 Local Public Safety Proposition 47 Savings Estimate The May Revision includes an estimated total state savings of $94.8 million in 2024-25, which is nearly $7 million higher than January projections. Proposition 47, approved by voters in 2014, requires misdemeanor rather than felony sentencing for certain property and drug crimes, and permits incarcerated persons previously sentenced for these reclassified crimes to petition for resentencing. Each year, state savings from the implementation of Proposition 47 are allocated through grants to public agencies for various recidivism reduction programs (such as mental health and substance use treatment services), truancy and dropout prevention, and victims' services. Post Release Community Supervision (PRCS) The May Revision eliminates the payments to county probation departments to address the temporary increase in the number of individuals released from prison on PRCS as a result of Proposition 57 (2016). The Governor’s January Budget proposal had included an estimated $4.4 million General Fund for probation in 2024-25 to supervise the PRCS population. Community Corrections Performance Incentive Grant The Community Corrections Performance Incentive Grant, established by SB 678 (Chapter 608, Statutes of 2009), was created to provide incentives for counties to reduce the number of felony probationers sent to state prison. The Governor’s January Budget proposal included $113.6 million General Fund in 2024-25 for probation departments. Updated projections are not included in the May Revision. Board of State and Community Corrections (BSCC) Additional Adjustments to Address the Budget Shortfall: • Medication Assisted Treatment (MAT) Grants – A reduction of $10.5 million in 2023-24 for competitive grants to counties for the provision of MAT to treat substance use disorders. • Organized Retail Theft Vertical Prosecution Grant Program – A reduction of $3.6 million one-time for funding not awarded to district attorneys to utilize vertical prosecution models. • Adult Reentry Grants – A one-time reduction of $57 million over three years for community-based organizations to provide reentry services for those formerly incarcerated in state prison. • California Violence Intervention and Prevention (CalVIP Grant Program) – Proposed elimination of the CalVIP Grant Program to be funded through a newly established Gun Violence Prevention and School Safety Fund beginning in 2024-25. • Cannabis Tax Fund Loan – A budgetary loan of $75 million from the Cannabis Tax Fund to the General Fund from resources not currently projected to be used for operational or programmatic purposes. Local Detention Facility Oversight ADMINISTRATION OF JUSTICE Attachment C 44 May 14, 2024 Page 9 of 30 • The May Revision proposes an increase of $3.2 million for the BSCC in 2024-25 and $7.6 million ongoing to implement in-custody, county jail death reviews pursuant to SB 519, Chapter 306, Statutes of 2023. Juvenile Justice • The May Revision includes statutory changes that will transfer administration of 2011 juvenile realignment grants from the BSCC to the Office of Youth and Community Restoration. • The May Revision increases one-time reimbursements by $2.3 million to cities and counties for costs associated with SB 203 (Chapter 335, Statutes of 2020), which requires youths, 17 years of age or younger, to consult with legal counsel prior to custodial interrogation and the delivery of Miranda rights. Department of State Hospitals Incompetent to Stand Trial (IST) Solutions • Jail-Based Competency Treatment (JBCT) and Community Based Restoration (CBR)/Diversion programs – A reduction of $73.3 million in 2023-24 one-time General Fund and $49.9 million in 2024-25 one-time General Fund to reflect activation delays in JBCT and CBR/Diversion programs, as well as county stakeholder contracts that are not yet executed. • Other IST Solutions adjustments – A reduction of $45 million in 2023-24 one-time General Fund to reflect updated implementation timelines for various IST Solutions initiatives and $129.4 million General Fund is proposed to be shifted from 2025-26 to 2026-27. These funds have multiyear authority under current law, and over time the investments will move consistently with updated program activities. California Department of Corrections and Rehabilitation (CDCR) • Adult Population Adjustment – The May Revision reflects an estimated average daily adult incarcerated population of 90,860 in 2024-25, which is 825 fewer than projected in the Governor’s January budget proposal. The projected average daily population of those on parole is 41,287 in 2024-25, which is a decrease of 935 compared to estimates included in the Governor’s January budget proposal. These projections yield a net decrease of $21.2 million for staffing reductions in 2024-25, with varying amounts in the subsequent years. • Chuckawalla Valley State Prison – A net reduction of $44.4 million one-time funding with the acceleration of the closure of Chuckawalla Valley State Prison in Riverside County from March 31, 2025, to November 30, 2024. • Housing Deactivations – A reduction of $80.6 million ongoing for savings associated with deactivating various housing units within 13 of CDCR’s state prisons. • California Advancing and Innovating Medi-Cal Justice-Involved (CalAIM JI) Initiative – $16.5 million in reimbursements one-time for CDCR to continue the development of an information technology-based Medi-Cal billing system that supports CalAIM JI implementation. • Los Angeles County Fire Camp Contract – A reduction of $2.4 million in 2024-25 and $4.8 million ongoing in savings after the state’s elimination of the contract. • Modifications to Pre-Release Reentry Funding – Adjustments to enable CDCR to utilize existing funding to offset increased costs associated with operating existing community Attachment C 45 May 14, 2024 Page 10 of 30 correctional reentry programs, while supporting the expansion of reentry programs based on projections of when new facilities will become operational. This proposal replaces the Governor’s January Budget proposal for community correctional reentry centers. Judicial Branch • CARE Act Funding – A reversion of up to $17.5 million from projected savings from the trial courts for the implementation of the CARE Act (see Health and Human Services section for more on the CARE Act). • Trial Court Trust Fund Unrestricted Fund Balance – A transfer of $25 million of unrestricted Trial Court Trust Fund dollars to the General Fund. The Governor’s January budget proposed a transfer of $80 million, bringing the cumulative total to $105 million. • Trial Court Operations – A reduction of $139.8 million General Fund, ongoing. • Trial Court Trust Fund Backfill – A reduction of $45 million, ongoing. • Remote Access to Court Proceedings – $5.1 million to be reappropriated to support the implementation of AB 716 (Chapter 526, Statutes of 2021), which prohibits a court from excluding public access to the courtroom when remote access is available. Department of Justice (DOJ) Adjustments for Some Recently Signed Legislation: • Law Enforcement Hate Crimes Policies: AB 449 (Chapter 524, Statutes of 2023) – to be increased by $1.9 million in 2024-25 and $1.7 million annually thereafter. • Tribal Police: AB 44 (Chapter 638, Statutes of 2023) – to be increased by $1.3 million in 2024-25 and $1.2 million annually thereafter. • Restorative Justice Program: AB 60 (Chapter 513, Statutes of 2023) – to be increased by $346,000 in 2024-25 and $271,000 annually thereafter. • Criminal Records Relief: AB 567 (Chapter 444, Statutes of 2023) – to be increased by $333,000 in 2024-25 and $313,000 annually thereafter. Attachment C 46 May 14, 2024 Page 11 of 30 The May Revision builds on the reductions proposed in the Governor’s January Budget including further 2024-25 cuts, as well as reductions to programs that were appropriated in previous budget years, but have not been expended. These funds have been “swept” back into the General Fund as part of the budget solution. In addition, the May Revision shifts some program expenditures from 2024-25 into future years. There are several programs that the May Revision attempts to preserve by shifting the funding source from the General Fund to other funds. Most significantly, the May Revision includes an additional $1.7 billion in shifts across climate resilience programs from the General Fund to the Greenhouse Gas Reduction Fund (GGRF). Flood and Water Management Major Reduction to Water Storage in Future Years The May Revision proposes a one-time reduction of $500 million in 2025-26 for water storage facilities in the Department of Water Resources budget. This funding was intended to support significant additional water supply investments and provided a needed state commitment to balance local and regional water investments. Reduction to Multi-Benefit Land Repurposing The May Revision proposes to sweep the funding from the Department of Conservation’s Multi- Benefit Land Repurposing Program which was created to support the conversion of lands necessitated by the reduction of groundwater use under the Sustainable Groundwater Management Act (SGMA). $5.7 million in the current year and $5.6 million appropriated in the 2021 Budget are proposed for reduction. Emergency Water Programs Cut The May Revision proposes to cut and sweep $11 million General Fund for the California Emergency Relief Fund’s Water Tank Program and $21.5 million for the California Emergency Relief Fund’s Save our Water Program. These programs were established to support communities affected by drought and water loss. Flood Programs Sustained through Budget Shifts The May Revision proposes to sustain a number of flood programs in 2024-25 by shifting funding on a one-time basis from the General Fund to the GGRF. These include: • $102.5 million for habitat restoration. • $39 million for systemwide flood risk. • $87 million for urban flood risk and Central Valley Flood risk programs. Tapping into Water Bonds and Federal Funds for Capital Investments Finally, the May Revision proposes to fund several programs through reimbursement from bonds and federal funds (Proposition 50 of 2002, Proposition 1 of 2016, and Proposition 68 of 2018). These include: • $3 million for water use efficiency grants from Proposition 50. • $15 million for Cache Creek Channel and Levee Rehabilitation and $673,000 for grantee and technical support from Proposition 68. AGRICULTURE, ENVIRONMENT AND NATURAL RESOURCES Attachment C 47 May 14, 2024 Page 12 of 30 • $5.2 million for Flood Control and Delta Levee Subventions and $2 million for San Joaquin River Restoration from Proposition 1. • $50 million to support new construction and vegetation enhancement at the Salton Sea from the Federal Trust Fund. Per- and Polyfluoroalkyl Substances Counties are on the front lines to clean up Per- and Polyfluoroalkyl Substances that have leeched into our soil and water. The May Revision proposes a reversion of $100.7 million General Fund in prior year funds and reduction of $30 million in 2024-25 for Per-and Polyfluoroalkyl support. This would maintain just under $23 million that was previously allocated to the program. Forestry and Fire Protection Fire Prevention and Forest Resilience Postponed The May Revision proposes to shift $26 million General Fund from 2024-25 to the 2027-28 fiscal year for major wildfire and forest resilience unit fire prevention projects, delaying fire prevention projects by three years. Fund Shifts All Around … Sustaining Fire Prevention Programs The May Revision proposes a shift of $120 million from the Timber Regulation and Restoration Fund (Timber Tax) to the Greenhouse Gas Reduction Fund (GGRF), to offset shifts from the GGRF to the General Fund. Programs proposed to be sustained through this t hree-way swap include: • $20 million Prescribed Fire Liability Pilot program from the General Fund to the GGRF, sustaining this county-supported program. • $40 million in g2024-25 and $42 million in 2027-28 for Wildfire and Forest Resilience program fire prevention grants. • $10 million in 2025-26 for tribal wildfire and forest resilience grants. These grants support fire prevention and resilience on tribal lands. This is accompanied by a proposed reversion of $10 million in unexpended funds from the current year. Adding Five Firefighter Hand Crews The May Revision proposes to add $46.5 million from the General Fund with 226 positions for five new firefighter hand crews. Hand crews are requested annually and provide ongoing support for vegetation management, hazardous fuel reduction projects, and wildland fire suppression. Regional Forest and Fire Capacity (RFFC) Program Cut and Postponed The May Revision proposes to eliminate $20 million GGRF funds proposed for 2024-25 for the RFFC Program. The revised Cap and Trade Spending Plan shifts the $20 million for this program from 2024-25 to 2027-28. The RFFC program supports local and regional efforts to assess the resilience of their forests and communities, identify forest health and wildfire prevention priorities, build local partner capacity, and develop a pipeline of shovel ready fuels reduction projects. Fire Insurance During his press conference to announce the May Revision, Governor Newsom said that his administration intends to put forth Trailer Bill Language that will address the state’s insurance crisis. We are still awaiting the final language, but anticipate that it will center on speeding up the rate filing process. Attachment C 48 May 14, 2024 Page 13 of 30 Coastal Planning and Programs Sea Level Rise Planning and Adaptation (SB 272) The May Revision proposes $2.1 million General Fund in the 2024-25 and $3.8 million ongoing (with 18 permanent positions) for state support of SB 272 (Chapter 384, 2023). SB 272 mandated that local governments incorporate sea level rise into Coastal Commission approved local coastal plans by 2034. Offshore Wind Permitting The May Revision proposes $1.5 million General Fund on a one-time basis for the Coastal Commission’s continued role in offshore wind energy planning and management. The funds are anticipated to be used to review proposed lease areas for consistency with state and federal coastal acts, and to support engagement with state, tribal, federal and local partners. Waste & Recycling Compost Permitting Pilot Program Two years ago, $7.5 million was committed for the Compost Permitting Pilot Program. $7 million was to be allocated during this year’s fiscal cycle for grants to local governments. The funding was intended to help local government entities and facilities locate and permit small and medium sized compost facilities and would serve as a tool to help local jurisdictions implement the goals set forth by SB 1383 (Chapter 395, Statutes of 2016) of diverting organic waste away from landfills. The May Revision reverts $6.7 million for the Compost Permitting Pilot Program from the General Fund, leaving $800,000 of what was previously committed. Wildlife Conservation Board Programs The May Revision proposes to sustain programs within the Wildlife Conservation Board by shifting funding source from the General Fund to GGRF. These include the following changes in 2024- 25: • $101 million for streamflow enhancement programs, which change the amount and timing of water moving through streams to benefit fish and wildlife. • $70 million for protection of fish and wildlife from changing ecosystem conditions. • $42 million for nature-based solutions, which can include landscape level projects to protect natural features and processes supporting broad ecosystems. Elimination of the Habitat Conservation Fund (HCF) The May Revision proposes to revert $45 million back to the General Fund in the current year and $20 million ongoing by accelerating the sunset date for the fund which is scheduled to sunset in 2030. The HCF was created in 1990 through Proposition 117 to provide an annual transfer of funds from mainly General Fund for acquisition of deer and mountain lion habitat, and to support wetlands, habitat, open space and other environmental purposes. Attachment C 49 May 14, 2024 Page 14 of 30 Farming and Agriculture The May Revision proposes a series of significant General Fund and GGRF reversions, cuts or eliminations to farming and agriculture support programs at the Department of Food and Agriculture (CDFA) across all sectors of farming and ranching. These include: • $2.1 million for Fairs and Exposition Resiliency Program from the Budget Act of 2021. • $5 million for relief for small farmers program which was created after devastating floods in 2023. • $10 million for the farm to school incubator grant program from the Budget Act of 2022. • $200,000 for technical assistance to underserved farmers from the Budget Act of 2022. • $2.8 million for the State Water Efficiency and Enhancement Program (SWEEP) in 2023- 24. A further $20.6 million per year in 2023-24 and 2026-27 from GGRF is proposed to be eliminated. • $6.9 million for the Water Efficiency Technical Assistance Program from the Budget Act of 2021. • A delay of $7 million for the Livestock Methane Reduction Program (GGRF) from 2024-25 to 2025-26. Local Food Purchasing Assistance The May Revision proposes to add a federal trust fund reimbursement to offset $25.8 million for local food purchasing assistance. This program is an agreement between the CDFA, Department of Social Services, California Association of Food Banks, and California Dairy Research Foundation for incentives to producers and landowners implementing climate-smart agriculture on working lands. Extreme Heat & Community Resilience During recent budget surplus years, important investments were made in several programs designed to help local communities and residents endure extreme heat and other emergency events. This year’s projected budget shortfall has led the Administration to propose substantial reductions to the programs. The May Revision proposes to eliminate funding for the Extreme Heat and Community Resilience Program; however, it maintains $70 million previously which was previously allocated for 2023- 24 and then delayed to 2024-25. To address revenue shortfalls, the May Revision also proposes significant cuts to climate resilience and adaptation programs, including: • $50 million reduction for the Regional Climate Resilience Program at the Office of Planning and Research. • $9.8 million reversion in 2023-24 funding for Regional Climate Collaboratives Program at the Strategic Growth Council. • $5 million reversion in 2023-24 funding for the Climate Adaptation and Resilience Planning Grants at the Office of Planning and Research. Climate Bond CSAC has been monitoring conversations around the possibility of a climate and natural resources bond, especially as climate programs are facing a reduction of investments. The Attachment C 50 May 14, 2024 Page 15 of 30 Governor has not expressed interest in a climate and natural resources bond and, in fact, said that he believes the voters do not have an appetite for bonds. With a lack of commitment from the Administration and no consensus in the Legislature, the fate of any potential bond is firmly up in the air. If a climate and natural resources bond becomes a reality, CSAC will advocate for provisions that aid counties in complying with the state’s climate mandates that must be fulfilled by counties, including implementation of SB 1383. Attachment C 51 May 14, 2024 Page 16 of 30 Broadband Middle-Mile, Last-Mile, and Loan Loss Reserve Programs The May Revision proposes adjustments to prior investments to assist in closing the projected budget shortfall. This unfortunately includes adjustments to SB 156 (Chapter 112, Statutes of 2021), a CSAC-supported measure that made a historic $6 billion investment in broadband infrastructure. $2 billion of direct funding was previously allocated for last-mile network construction, while $3.3 billion was previously earmarked to construct a statewide open-access middle-mile network. The May Revision proposes reductions to the California Department of Technology’s Middle Mile Broadband Initiative: $250 million reduction in 2024-25 and $1.3 billion in 2025-26. It proposes to delay $200 million in 2025-26 for the Last-Mile Grant Program administered by the California Public Utilities Commission (CPUC). Also, reductions to the CPUC’s Loan Loss Reserve Program are proposed: $175 million in 2023-24, $150 million in 2024-25, and $175 million in 2025-26. Broadband Mapping The May Revision proposes an increase of $1.3 million in one-time funding in 2024-25 and $1.2 million annually thereafter for CSAC-supported AB 286 (Chapter 645, Statutes of 2023), with an increased allocation for two additional permanent positions. The funding will help improve the CPUC's statewide broadband map with increased transparency, granularity, and accuracy for household broadband service data. Broadband Equity, Access, and Deployment Program The May Revision includes a proposed increase of $1.9 billion in one-time funding and an allocation of 31 permanent positions to implement the Broadband Equity, Access, and Deployment (BEAD) program. This reflects the anticipated amount of federal funds announced for California by the National Telecommunications and Information Administration in June of 2023. California Lifeline Program The May Revision proposes an increase of $30.9 million in ongoing funding for the California Public Utilities Commission (CPUC) for the Universal Lifeline Telephone Service Trust Administrative Committee Fund to implement the California Lifeline Program. Out of that increase, $2.2 million is allocated funding for a new contract for a Third-Party Administrator who will administer the CPUC’s Foster Youth Line Program, which provides unlimited talk/text and up to 25 GB of free data with a participating service provider. The remaining $28.8 million was proposed based on the CPUC’s estimation that program participation will increase as customers who were previously enrolled in the federal Affordable Connectivity Program (ACP) will transition back to the California Lifeline Program now that the ACP expired in April 2024. CSAC supports the expansion of broadband infrastructure, increasing affordability and enhancing access to broadband for all Californians. Nearly 15 million Californians live in a broadband monopoly. Today, one in five Californians do not have fast, reliable, and affordable connectivity. State resources and investments are an essential first step towards increasing connectivity and affordability and CSAC will continue to advocate for closing the digital divide. GOVERNMENT FINANCE AND ADMINISTRATION Attachment C 52 May 14, 2024 Page 17 of 30 Privacy Internet Websites and Email Addresses The May Revision proposes increases of $147,000 in 2024-25 and $147,000 in 2025-26 for the Department of Technology to conduct an inventory of all high-risk automated decision systems used by state entities per the CSAC-opposed AB 1637 (Chapter 586, Statutes of 2023). The enacted law requires local agencies to secure and migrate to a new “.gov” or “.ca.gov” domain no later than January 1, 2029 and requires all associated email addresses connected to reflect the updated domain within the same time frame. Labor Healthcare Minimum Wage Increase The May Revision did not include the trigger mechanism previously mentioned in the Governor’s January Budget that would allow the Governor to delay implementation of the increased minimum wages and salaries of healthcare workers as per SB 525 (Chapter 890, Statutes of 2023), during times of economic downturn. Please see the Health and Human Services section for more details. Workers’ Compensation There is a proposed $300,000 increase in 2024-25 and 2025-26 for the CSAC-opposed SB 623 (Chapter 621, Statutes of 2023), which was a substantial expansion of California’s current workers’ compensation presumption for Post Traumatic Stress Disorder to public safety dispatchers and communications workers. California Jobs First (Formerly the Community Economic Resilience Fund (CERF)) The May Revision proposes to reduce funding by $50 million annually beginning in 2024-25 through 2026-27. Educational Revenue Augmentation Fund (ERAF) The Governor’s January Budget proposed statutory changes to make charter schools eligible to receive ERAF, which would diminish the portion of excess ERAF available to local agencies in counties with excess ERAF. After several months of discussions and budget subcommittee hearings, the trailer bill language was published on May 14. The Governor’s January Budget proposal lacked an appropriation to backfill the insufficient ERAF amounts for Alpine, Mono, and San Mateo counties. The three counties would collectively require an appropriation of $72.9 million to be held harmless under the Vehicle License Fee reduction made in 2004. Attachment C 53 May 14, 2024 Page 18 of 30 The May Revision proposal includes $256.2 billion ($70.2 billion General Fund – nearly 35% of the state’s overall General Fund budget expenditures) in 2024-25 for all health and human services programs that support our state’s most vulnerable communities. The May Revision reflects a reduction of more than $3.4 billion General Fund compared to expenditure appropriations included in the Governor’s January budget proposal. Although the Governor’s January Budget largely maintained funding for critical investments made in recent years, it included specified delays, deferrals, and targeted reductions to health and human services programs. In addition, the Governor’s January Budget proposed to withdraw $900 million from the Safety Net Reserve to fund existing benefits and services within Medi-Cal and CalWORKs. Due to the larger projected budget shortfall, the May Revision proposes additional reductions beyond those proposed in the Governor’s January Budget to health and human services investments, including cuts to critical public health infrastructure, workforce development, and social safety net programs. Realignment The Governor's May Revision includes updated revenue assumptions for 1991 Realignment and 2011 Realignment. For 1991 Realignment, while total revenues are projected to increase in 2023- 24, only Vehicle License Fee (VLF) revenues are projected to have growth. For sales tax revenues, the projections indicate a slight decrease in 2023-24 and no caseload or general growth. The projections for 2024-25 indicate growth for both revenue sources. However, there is no general growth projected for sales tax, but rather only revenues to cover a portion of caseload growth. The Realignment revenue tables, including specific projections by subaccount, are included in the appendix at the end of this Budget Action Bulletin. HEALTH Proposed Health and Behavioral Health Budget Solutions To address the larger projected budget shortfall, in addition to the solutions approved under early action and proposed in the Governor’s Budget in January, the May Revision proposes the following notable proposals in the area of health and behavioral health: • Managed Care Organization (MCO) Tax — reduction of $6.7 billion over multiple years from the Medi-Cal provider rate increases planned for January 1, 2025, as well as Graduate Medical Education and Medi-Cal labor workforce. On the revenue side, the May Revision proposes an amendment to the MCO tax to include health plan Medicare revenue in the total revenue limit calculation, which increases the allowable size of the tax resulting in an additional net state benefit of $689.9 million in 2024-25, $950 million in 2025-26, and nearly $1.3 billion in 2026-27. Overall, the May Revision includes an additional $9.7 billion in MCO tax funds over multiple years to support the Medi-Cal program. • Elimination of Public Health Infrastructure Funding — elimination of $52.5 million in 2023- 24 and $300 million General Fund ongoing for public health investments, including the HEALTH AND HUMAN SERVICES Attachment C 54 May 14, 2024 Page 19 of 30 entire $200 million in ongoing funding previously approved in the 2022 Budget Act for local health jurisdictions. • Healthcare Workforce Reductions – elimination of $300.9 million in 202324, $302.7 million in 2024-25, $216 million in 202526, $19 million in 2026-27, and $16 million in 202728 for various healthcare workforce initiatives overseen by the Department of Health Care Access and Information (HCAI) including community health workers, nursing, social work, addiction psychiatry and medicine fellowships, Song-Brown residencies, Health Professions Career Opportunity Program, the Psychiatry Local Behavioral Health Program, and California Medicine Scholars Program. The May Revision also eliminates $189.4 million Mental Health Services Fund for programs that were proposed to be delayed to 2025-26 in the Governor's January Budget proposal. • Children and Youth Behavioral Health Initiative (CYBHI) Investment Reductions — reduction of $72.3 million one-time in 2023-24, $348.6 million in 2024-25, and $5 million in 2025-26 for school-linked health partnerships and capacity grants for higher education institutions, the behavioral health services and supports platform, evidence-based and community-defined grants, public education and change campaign, and the youth suicide reporting and crisis response pilot. • Behavioral Health Continuum Infrastructure Program (BHCIP) Reduction – elimination of $450.7 million one-time ($70 million in 2024-25 and $380.7 million in 2025-26) from the last round (Round 6) of BHCIP, while maintaining $30 million one-time General Fund in 2024-25. • Behavioral Health Bridge Housing (BHBH) Funding Reduction – reduction of $340 million total ($132.5 million in 2024-25 and $207.5 million in 2025-26) for the BHBH Program, while maintaining $132.5 million General Fund in 2024-25 and $117.5 million ($90 million Mental Health Services Fund and $27.5 million General Fund) in 2025-26. This leaves slightly over $1 billion in funding for this program to address the immediate housing and treatment needs of individuals with serious behavioral health conditions who are experiencing unsheltered homelessness. • Equity and Practice Transformation Payments to Providers – elimination of $280 million in one-time funding over multiple years for grants to Medi-Cal providers for quality, health equity, and primary care infrastructure. The May Revision maintains $70 million General Fund included in the 2022 Budget Act. • Medi-Cal Expansion Regardless of Immigration Status – maintenance of the expansion of Medi-Cal to all Californians regardless of immigration status, but elimination of the In- Home Supportive Services (IHSS) benefit for beneficiaries in this population at any age. This benefit reduction results in General Fund savings of approximately $433 million, consisting of $338 million related to lower-than-expected utilization, and $95 million of actual utilization that would be reduced upon eliminating the benefit entirely. • Freeze Medi-Cal County Administration Increases — reduction of $20.4 million in 2024- 25, $42 million in 2025-26, $65 million in 2026-27, and $88.8 million in 2027-28 to freeze funding levels for county administration of Medi-Cal eligibility functions. Attachment C 55 May 14, 2024 Page 20 of 30 • Naloxone Distribution Project and Medication Assisted Treatment Reduction — reduction of $57.3 million in 2024-25 and ongoing, and $3.7 million from state operations in 2024- 25 and ongoing. • Proposition 56 General Fund Backfill — in recent years, Proposition 56 revenues have been insufficient to fully cover the cost of Proposition 56 payments. The May Revision proposes to use $145.4 million from MCO tax revenue in 2024-25 to support the Medi-Cal Family Planning, Women’s Health, and Physician Services supplemental Proposition 56 payments in lieu of General Fund. In addition, the May Revision proposes $64 million General Fund in 2024-25 to fully fund Dental Services Proposition 56 supplemental payments. • Health Enrollment Navigators – elimination of $18 million General Fund in remaining funding for the Health Enrollment Navigators Project, and an additional $8 million in remaining funding for Health Enrollment Navigators for Clinics, in 2024-25. These funds are provided to counties and community-based organizations for Medi-Cal outreach, enrollment, and retention activities. Proposition 1 – Behavioral Health Services Act (BHSA)/Behavioral Health Infrastructure Bond Act (BHIBA): Initial Funding for County and State Implementation Proposition 1, which voters approved at the March 2024 statewide primary election, seeks to address the behavioral health and homelessness crises facing our state through significant reforms to our existing mental health system and $6.4 billion in critically needed investment in our state’s behavioral health infrastructure. The May Revision proposes a total of $85 million ($50 million General Fund and $30 million federal funds) in 2025-26 for county behavioral health administrative costs for planning and implementation of portions of the BHSA. Notably, it appears no ongoing funding is currently included for county administrative costs associated with implementation of Proposition 1. Welfare and Institutions Code (WIC) section 5963(c) specifies the following costs shall be included in the Governor’s 2024-25 May Revision: • New and ongoing county and behavioral health agency administrative costs to implement Article 2 (behavioral health planning and reporting) and WIC section 14197.71 (aligning county behavioral health plans and Medi-Cal managed care plan contract requirements); • Any costs for plan development required under the Article that exceed the 5% administrative cap; and, • Any costs for reporting required by Article 2 that exceed the 2% cap (4% for small counties) for improving plan operations. The May Revision estimate reflects very early and limited consultation by the Administration with county associations to develop the initial and ongoing impacts of this complex initiative given time constraints due to the delayed results confirming voter approval of Proposition 1 and the pending development of numerous policy criteria and processes. CSAC will continue its engagement with the Administration and county partners as the budget details are deliberated and finalized. Attachment C 56 May 14, 2024 Page 21 of 30 The May Revision also includes the following resources for state entities involved with Proposition 1 efforts: • Department of Health Care Serves (DHCS) – $126.9 million total funds, including ($16.9 million General Fund, $28.2 million BHSA Fund, $31.6 million Opioid Settlement Fund, $10.4 million Behavioral Health Infrastructure Bond Act, and $39.8 million federal funds) in 2024-25 for DHCS to begin implementation of the provisions of Proposition 1. DHCS has also proposed budget trailer bill language, which they indicate addresses technical clean-up issues, that was released on May 14. • Department of Health Care Access and Information (HCAI) – $631,000 one-time for the planning, implementation, and oversight of the Behavioral Health Services Act Workforce Initiative. • Mental Health Services Oversight and Accountability Commission (MHSOAC) – $494,000 annually in 2024-25 through 2026-27, and $394,000 in 2027-28 and ongoing, to support staffing and workload related to the implementation of the behavioral health transformation efforts. On May 14, the Governor held a press conference announcing the Administration’s intention to expedite the initial round of Proposition 1 bond funding. Following the press conference, DHCS released a Bond BHCIP Program Update on BHCIP Rounds 1 and 2, which provides an overview of the program, BHCIP to date, technical assistance, and eligibility (entities, considerations and facility types), and funding parameters. Of note, for Bond BHCIP Round 1, the $1.5 billion available exclusively for counties, cities, and tribal entities will not be subject to a regional funding cap, although the remaining BHCIP funding will be subject to the regional funding caps as outlined in the program update document. Community Assistance, Recovery and Empowerment (CARE) Act Consistent with the Governor’s Budget released in January, the May Revision continues to support statewide implementation of the CARE Act. CSAC has requested and is still pending detailed budget information from the Department of Finance but was provided with top-line information that General Fund support for state and county activities consists of $71.3 million in 2023-24, increasing to $107.7 million in 2026-27 at full implementation. Compared to the Governor's January Budget proposal, the May Revision reflects decreases primarily to account for updated assumptions on caseload/utilization. Lanterman-Petris-Short (LPS) Act – SB 43 The May Revision includes $539,000 in 2024-25 and $512,000 in 2025-26 and annually thereafter to support six permanent positions at DHCS for activities to expand DHCS data collection and reporting requirements pertaining to involuntary detentions under the LPS Act pursuant to SB 43 (Chapter 637, Statutes of 2023). Notably, no funding is included for counties to implement the provisions of these new activities under the LPS Act. California Advancing and Innovating Medi-Cal (CalAIM) Consistent with the Governor’s January budget proposal, the May Revision maintains the multi- billion-dollar commitment to continue efforts to transform the healthcare delivery system through CalAIM, to strengthen the Medi-Cal program by offering Californians more equitable, coordinated, and person-centered care. Attachment C 57 May 14, 2024 Page 22 of 30 Medi-Cal The Medi-Cal budget includes $157.3 billion ($37.2 billion General Fund) in 2023-24 and $159.1 billion ($35.6 billion General Fund) in 2024-25. Medi-Cal is projected to cover approximately 15.2 million Californians in 2023-24 and 14.5 million in 2024-25—more than one-third of the state’s population. Since the release of the Governor’s Budget in January, caseload reductions due to eligibility redeterminations have continued, but the trend of discontinuances has slowed due in part to flexibilities put in place to streamline the renewal process. The May Revision proposal continues to support implementation of significant investments made to date in the Medi-Cal program, including fully funding the expansion of benefits to adults regardless of immigration status. The May Revision includes $1.4 billion ($1.2 billion General Fund) in 2023-24, and $3.3 billion ($2.8 billion General Fund) in 2024-25 to implement the expansion to income eligible adults aged 26-49 regardless of immigration status, which took effect on January 1, 2024. Managed Care Organization (MCO) Provider Tax As proposed in the Governor’s January budget and enacted through the early action budget agreement in SB 136 (Chapter 6, Statutes of 2024), DHCS submitted a request to modify the MCO tax proposal to the federal Centers for Medicare and Medicaid Services (CMS) in March 2024. The modified tax model increases the amount of the tax and is estimated to generate $1.5 billion in additional net funding to the state over the remaining duration of the tax. The requested effective date for the modification is January 1, 2024, through December 31, 2026. CMS approval of the modification is still pending. The May Revision reflects the following updates to the MCO tax proposal: • Medicare revenue – DHCS proposes modifications to the MCO tax proposal to more fully account for Medicare revenue in determining the maximum aggregate tax allowable while meeting federal requirements. The May Revision assumes $689.9 million in net reduced General Fund costs in 2024-25 related to this change. DHCS will be proposing trailer bill language to effectuate this proposal. • Maintains 2024 targeted rate increases – the May Revision continues to include $727 million total funds ($291 million from the Medi-Cal Provider Payment Reserve Fund) for increasing provider rates for primary care, non-specialty mental health services, and obstetric care (including doulas) services to at least 87.5% of Medicare rates. • Eliminates MCO tax investments proposed in the Governor’s January budget, other than the targeted rate increases implemented on January 1, 2024. The May Revision proposes to use MCO tax revenues, previously proposed in the Governor’s January budget to support additional targeted rate increases, other investments, and transfers to the Medi- Cal Provider Payment Reserve Fund for later use, to support existing costs in Medi-Cal. Combined, these proposed actions result in reduced General Fund costs of $75 million in 2023-24 and $879 million in 2024-25. Proposed eliminations include: o Eliminates MCO Tax Graduate Medical Education (GME) and Workforce Pool Funding. The Governor’s January budget reflected annual funding for GME beginning in 2023-24 and annual funding for the Medi-Cal Workforce Pool beginning in 2024-25. The May Revision proposes to eliminate these expenditures in 2023-24, 2024-25, and ongoing, and redirect the MCO tax funding to cover existing services in Medi-Cal. Attachment C 58 May 14, 2024 Page 23 of 30 o Eliminates 2025 MCO tax targeted rate increases/investments and fund reserve. The Governor’s January budget reflected $1.9 billion total funds ($773.9 million state funds) in 2024-25 for targeted rate increases and other investments. The May Revision proposes to eliminate these expenditures in 2024-25 and ongoing. Health Care Worker Minimum Wage (SB 525) The May Revision reflects no new information about implementation of SB 525 (Chapter 890, Statutes of 2023), which increases the minimum wage incrementally to $25 an hour for specified health care workers. Additionally, the Department of Finance confirmed the May Revision includes no funding for implementation of SB 525. The Administration had initially sought early action in January by the Legislature to amend SB 525 to add an annual trigger mechanism to make the wage increases subject to a determination of sufficient General Fund revenues, clarify the exemption for state facilities, and make other implementation clarifications, however, no proposed budget trailer bill language or details have been released to date to effectuate the changes. Notably, wage increases for some health care providers will go into effect on June 1, 2024, under current law. The Governor indicated during the budget press conference on May 10 that the issue would be resolved/addressed by the time the budget is signed. Public Health State and Local Public Health Infrastructure Investments Proposed for Elimination The May Revision proposes to eliminate the full $200 million in ongoing General Fund to local health jurisdictions that is critically needed to address vital public health priorities such as modernizing local public health infrastructure and bolstering public health staffing. The May Revision also proposes to eliminate the $100 million in ongoing General Fund to the Department of Public Health to support increased state public health capacity in foundational areas such as emergency preparedness and response and workforce development and training. Increase in Directed Payments to Public Hospitals The May Revision proposes to increase directed payments to public hospitals through programs such as the Enhanced Payment Program and Quality Incentive Pool . The May Revision proposes to develop an administrative fee on intergovernmental transfers related to these directed payment programs. Collectively, these actions are estimated to result in General Fund reimbursements of $37 million in 2024-25 and $74 million in 2025-26 and annually thereafter to provide additional support to public hospitals. Children’s Hospital Directed Payments The May Revision proposes new directed payments for children’s hospitals in the amount of $230 million total funds (50% federal funds, 50% Medi-Cal Provider Payment Reserve Fund (from MCO tax revenue)) annually. The directed payments will support access to critical hospital services for California’s most vulnerable children being treated for the most serious and life-threatening diseases. HUMAN SERVICES The Governor’s May Revision proposes substantial cuts that impact all human services programs. Many of these cuts are ongoing or program eliminations and are in addition to cuts included in the January Budget. CSAC has significant concerns with these cuts as they will have detrimental Attachment C 59 May 14, 2024 Page 24 of 30 impacts to the services that vulnerable Californians rely on every day and that counties administer on behalf of the state. In-Home Supportive Services Below are the May Revision proposals impacting the In-Home Supportive Services (IHSS) program: • Elimination of the IHSS permanent back-up provider system ($11.6 million) • Changing the Medi-Cal expansion for undocumented individuals so that these individuals will not be eligible for IHSS ($94.7 million) • Reduction in funding for the IHSS Career Pathways Program ($60 million) The IHSS permanent backup provider system was enacted in 2022 and facilitates recipients to find a provider and receive care in times of immediate need. While eligibility for Medi-Cal for undocumented individuals who are included in the Medi-Cal expansion is not proposed to be altered by the May Revision, these individuals would no longer be eligible for the IHSS program under this proposal. Overall IHSS costs for 2023-24 and 2024-25 are higher than projected in the Governor’s Budget due to growth in projected caseload, hours per case, and cost per hour. Child Welfare and Foster Care Below are the May Revision proposals impacting child welfare and foster care: • Elimination of Foster Care Caregiver Approvals ($50 million General Fund); and • Subjecting the implementation of the new foster care rates proposal to a trigger provision. In addition to these new cuts, the May Revision continues the cuts proposed in the Governor’s January budget that include the elimination of the Family Urgent Response System, the Supervised Independent Living Program supplement, and the Housing Navigation and Maintenance program. The resource family approval funding is used to meet timeline requirements for approval of relative caregivers through the Resource Family Approval process. For the foster care rates proposal, the May Revision includes an increase of $2.5 million for automation costs from the amount included in the January Budget proposal. The trigger language for this proposal would make implementation of the new tiered rate structure dependent upon the availability of General Fund revenues over the multiyear forecast in spring 2026. The updated trailer bill language was released today and reflects stakeholder feedback and the addition of the trigger provision. CSAC will review this updated language. Adult Protective Services Below are the May Revision proposals impacting the Adult Protective Services (APS) program: • Reduction in funding for the APS Expansion ($40 million General Fund) • Elimination of APS Training funding ($4.8 million General Fund) The Adult Protective Services Expansion was enacted in 2021 and lowered the population served by APS from 65 to 60 years of age. In addition, it allowed for increasing social worker staffing to provide long-term case management for individuals with more complex needs. The proposed cut would reduce funding from $70 million to $30 million annually. The APS training funding that is Attachment C 60 May 14, 2024 Page 25 of 30 proposed to be eliminated supports social work staff and is used for uniformity and consistency in APS services. CalWORKs Below are the May Revision proposals impacting the CalWORKs program: • One-time reduction to Employment Services Component of the Single Allocation ($272 million General Funds and Federal Funds) • Reduction in funding for the Home Visiting Program ($47.1 million General Fund and Federal Funds) • Elimination of funding for Mental Health and Substance Abuse Services ($126.6 million General Fund) In addition to these new cuts, the May Revision continues several cuts proposed in the Governor’s January budget proposal related to CalWORKs funding with slight modifications. The elimination of funding to the Family Stabilization and Expanded Subsidized Employment programs remains, but would now begin in 2024-25 instead of being retroactive to the current year. For the Single Allocation, the ongoing cuts proposed in January for the Eligibility component and Employment Services component remain as well. The May Revision includes $1.3 billion in total funding for the Single Allocation in 2024-25, which is a decrease of $162 million from January. The $272 million reduction to the Employment Services component is partially offset by an increase in Employment Services caseload. Finally, the May Revision includes a 0.3% increase in the Maximum Aid Payment (MAP) effective October 1, 2024. This reflects the revenues available for an increase in the Child Poverty and Family Supplemental Support Subaccount and is lower than the 0.8 MAP increase estimated in the January Budget. Aging Below are the May Revision proposals impacting California Department of Aging programs: • Elimination of the Older Californians Act Modernization Program ($37.2 million General Fund) • Elimination of the Older Adult Behavioral Health Program ($20 million General Fund) The Older Californians Act Modernization Program funds pilot programs in the areas of community-based services programs, senior nutrition, caregiver supports, volunteer development, and aging in place. Nutrition Assistance Below are the May Revision proposals impacting nutrition assistance programs: • Delay of California Food Assistance Program Expansion ($31.2 million General Fund) • Eliminates funding for the Minimum Nutrition Benefit Pilot ($15 million General Fund) • Elimination of funding for Work Incentive Nutrition Supplement Program ($25 million General Fund) The California Food Assistance Program (CFAP) provides CalFresh food benefits for non-citizens who do not qualify for federal benefits. The 2022 Budget included funding to expand CFAP to all income-eligible Californians, age 55 years or older, regardless of their immigration status. The Attachment C 61 May 14, 2024 Page 26 of 30 May Revision proposes to delay CFAP automation to instead begin in 2026-27 with benefits now beginning in 2027-28. The CalFresh Minimum Nutrition Benefit Pilot Program would have provided eligible CalFresh recipients with a minimum monthly benefit of $50 over 12 months, increasing from $23. The May Revision proposes to decrease funding for the pilot by $15 million one-time in 2024-25, eliminating the program. The Work Incentive Nutrition Supplemental (WINS) Program provides $10 per month supplemental food benefits to working families who receive CalFresh benefits but do not receive CalWORKs benefits. Beginning in 2025-26 and ongoing, the May Revision proposes to decrease funding by $25 million, eliminating the program. Child Care Below are May Revision proposals impacting child care: • Pause expansion of child care slots ($489 million, nearly all General Fund) • $34.8 million General Fund cut to the Emergency Child Care Bridge Program The Governor’s May Revision proposes to pause the multi-year expansion of subsidized child care slots originally committed to through the 2021 Budget Act. Approximately 119,000 subsidized child care slots have been added since funding was first authorized, with a goal of creating over 200,000 new slots by 2026-27. The May Revision proposes to pause the expansion until fiscal conditions allow for resuming the expansion. This pause will result in a revenue gain of $489 million in 2024-25 and $951 million in 2025-26. The Governor’s May Revision proposes to reduce the Emergency Child Care Bridge Program by $34.8 million in 2024-25 and ongoing. This program facilitates the placement of children within the foster care system into a stable childcare setting. Attachment C 62 May 14, 2024 Page 27 of 30 HOMELESSNESS The Governor’s May Revision proposes substantial funding reductions for numerous homelessness programs. CSAC has significant concerns with these cuts as they will have detrimental impacts to homelessness response efforts including services and housing supports for vulnerable populations. Below are the May Revision proposals impacting homelessness programs: • Elimination of Homeless Housing, Assistance and Prevention (HHAP) Program Round 5 supplemental grant funding ($260 million General Fund) • Elimination of funding for the Bringing Families Home (BFH) Program ($80 million General Fund) • Elimination of funding for the Home Safe Program ($65 million General Fund) • Elimination of funding for the Housing and Disability Advocacy Program (HDAP) ($50 million General Fund) In addition to these new cuts, the May Revision maintains funding reductions included in the Governor’s January Budget for programs that help foster youth find and retain housing. This includes an ongoing $13.7 million reduction for the Housing Navigator and Maintenance Program and an ongoing $25.5 million reduction for the Supervised Independent Living Placements supplemental payment. The $260 million in HHAP Round 5 supplemental funding that is proposed to be cut was originally intended to be distributed as HHAP bonus funding from Rounds 3 and 4. The funding for the three social services programs was originally proposed to be delayed in the January Budget proposal but is now proposed to be eliminated. BFH provides housing-related supports to child welfare involved families and those at risk of homelessness. Home Safe helps prevent homelessness for victims of elder and dependent adult abuse and neglect served by APS. HDAP serves people who are homeless or at risk of homelessness and are likely eligible for disability benefits and housing supports. The May Revision does not include ongoing funding or a sixth round of funding for the HHAP Program. Attachment C 63 May 14, 2024 Page 28 of 30 HOUSING, LAND USE, AND TRANSPORTATION Housing and Land Use The May Revision reduces the remaining balances from several programs that support affordable housing, including the Veterans Housing and Homelessness Prevention Program, the Infill Infrastructure Grant Program, the Multifamily Housing Program and the Foreclosure Intervention Housing Preservation Program. These reductions are in addition to the $1.2 billion in cuts to affordable housing funding previously proposed in the Governor’s January Budget. CSAC will continue to advocate on behalf of counties for funding to address housing affordability in our communities. Adaptive Reuse Program The Governor’s January Budget did not propose changes to the Adaptive Reuse Program, leaving it with an allocation of $127.5 million in 2023-24 General Fund. The May Revision proposes to revert this remaining money back to the General Fund, eliminating the program. Infill Infrastructure Grant Program The Governor’s January Budget included $225 million for the Infill Infrastructure Grant (IIG) program in 2024-25. The May Revision reverts $25 million in funds appropriated in the 2023 Budget Act and $10 million appropriated in the 2022 Budget Act for the IIG program. The goal of the IIG program is to prioritize prime infill parcels in downtown oriented areas and brownfields. Multifamily Housing Program The Governor’s January Budget proposed to reduce previous General Fund allocations to the Multifamily Housing Program (MHP) by $250 million, leaving a balance of $75 million. The May Revision now proposes to cut this full remaining balance. The MHP provides competitively awarded grants to a broad variety of affordable housing projects. Foreclosure Intervention Housing Preservation Program The Governor’s January Budget proposed to cut $237.5 million in General Fund from the Foreclosure Intervention Housing Preservation Program (FHIPP), leaving a balance of $236.5 million. The May Revision now proposes to eliminate the remaining $236.5 million in 2023-24 for this program, in addition to the $237.5 million proposed in the January Budget, eliminating the program. CalHome The 2022 Budget Act included $350 million one-time General Fund ($250 million in the 2022 Budget Act and $100 million committed for 2023-24) for the Department of Housing and Community Development’s CalHome program, to provide local agencies and nonprofits grants to assist low- and very-low-income first-time homebuyers with housing assistance, counseling and technical assistance. The Governor’s January Budget proposed to remove $100 million one-time General Fund in 2023-24. This cut remains, but there were no further reductions to the program proposed in the May Revision. Attachment C 64 May 14, 2024 Page 29 of 30 Veterans Housing and Homelessness Prevention Program The May Revision reverts $26.3 million appropriated in the 2022 Budget Act for the Veterans Housing and Homelessness Prevention Program. This action effectively ends General Fund support for the program. Regional Early Action Planning Grants 2.0 The May Revision extends the timeline to spend the Regional Early Action Planning (REAP) Grants 2.0 from June 30, 2024 to June 30, 2026 to align the encumbrance dates with statute. The Governor’s January Budget proposed to cut $300 million from the REAP 2.0 Program, with no changes in the May Revision. CSAC will advocate for the restoration of REAP 2.0 funding provided in past budgets. Low Income Housing Tax Credits The May Revision includes a one-time additional $500 million in state supplement Low-Income Housing Tax Credits (LIHTC), which supports affordable housing production. The LIHTC program provides investments to a variety of affordable housing projects, helping to leverage federal affordable housing resources in the process. By statute, the state must allocate a specified amount to state LIHTC each year. In recent years, the state budget has also included a $500 million supplement to the statutory threshold. The Governor’s January Budget did not include such a supplement for 2024-25. The May Revision proposes to continue the supplement at the same amount provided in past budgets. Transportation After years of unprecedented General Fund allocations to transportation programs, the May Revision proposes further reductions and fund shifts beyond those proposed in the Governor’s January Budget. The May Revision proposes additional General Fund reductions of $973 million and $555 million in fund shifts. Transit and Intercity Rail Capital Program The Transit and Intercity Rail Capital Program funds capital projects that support state and local intercity rail, bus, ferry, and rail transit systems. The May Revision proposes shifting $551.1 million in program resources from the General Fund to the Greenhouse Gas Reduction Fund (GGRF). Additionally, the May Revision proposes reducing the Competitive Transit and Intercity Rail Capital Program by $148 million. This reduction consists of the balance of unawarded grant funds in the program. These changes are in addition to the Governor’s January Budget proposals that would delay $3.2 billion General Fund to future fiscal years and shift $791 million of funding from the General Fund to the GGRF. Zero Emission Transit Capital Program The 2023 Budget Act established the Zero Emission Transit Capital Program and appropriated $1.1 billion in GGRF and Public Transit Account resources beginning in 2023-24 to 2026-27. The funding will be allocated to regional transportation planning agencies by a population-based formula and another formula based on revenues to fund zero-emission transit equipment and operations. The May Revision proposes to shift $460 million of the GGRF funding provided to the 2027-28 Budget. This shift will likely delay the awarding of grant funds and the purchasing of program compliant vehicles. Attachment C 65 May 14, 2024 Page 30 of 30 Active Transportation Program The Active Transportation Program is a transportation grant program that funds projects which increase the use of active modes of transportation, such as walking and biking. The May Revision proposes an additional $300 million reduction of General Fund resources to the program. This is in addition to the $200 million reduction proposed in the Governor’s January Budget. Public Works The May Revision proposes a $143.9 million reduction to the Zero Emission Vehicle Fueling Infrastructure Grant Program. This program provides grant funding to counties to support the implementation of California Air Resources Board’s (CARB) Advanced Clean Fleets (ACF) regulations. Beginning January 1, 2024, CARB began to require that all public fleet owners begin replacing their medium and heavy-duty fleet vehicles with Zero-Emission Vehicles (ZEV). The most common types of compliant ZEV’s utilize either battery-electric components or hydrogen fuel cell technology. State funding is necessary to provide resources to counties to acquire the ZEV medium and heavy-duty vehicles without increasing rates and fees. Additionally, counties need financial assistance to build out the necessary charging infrastructure to implement the ACF regulations. CSAC will continue to advocate for policies and funding that ease the implementation of Advanced Clean Fleets for counties. If a 2024 Climate, Water, and Natural Resources Bond begins to take shape, CSAC will advocate for including funding for the infrastructure needed to comply with Advanced Clean Fleets regulations. Attachment C 66 CalWORKs Social Mental Family Child MOE Services Health Support Poverty Base Funding Sales Tax Account $752,888 $152,266 $2,480,037 $337,129 $462,930 $512,972 $4,698,222 Vehicle License Fee Account 367,663 1,071,315 216,223 105,480 185,798 420,228 2,366,708 Subtotal Base $1,120,551 $1,223,582 $2,696,259 $442,610 $648,728 $933,200 $7,064,929 Growth Funding Sales Tax Growth Account:$- $6,530 $65,869 $13,246 $- $15,609 $101,253 Caseload Subaccount -- (65,869)--- (65,869) General Growth Subaccount - (6,530)- (13,246)- (15,609) (35,384) Vehicle License Fee Growth Account - 21,888 -44,399 -52,320 118,608 Subtotal Growth $-$28,418 $65,869 $57,644 $-$67,929 $219,861 Total Realignment 2022-231/$1,120,551 $1,252,000 $2,762,128 $500,254 $648,728 $1,001,129 $7,284,790 Base Funding Sales Tax Account $749,929 $0 $2,535,901 $348,998 $619,283 $526,503 $4,780,614 Vehicle License Fee Account 370,622 1,208,812 216,223 146,920 70,189 472,549 2,485,315 Subtotal Base $1,120,551 $1,208,812 $2,752,123 $495,918 $689,473 $999,052 $7,265,929 Growth Funding Sales Tax Growth Account:$-$0 $0 $0 $-$0 $0 Caseload Subaccount --0 ---0 General Growth Subaccount -0 -0 -0 0 Vehicle License Fee Growth Account - 26,528 -53,809 -63,410 143,746 Subtotal Growth $-$26,528 $0 $53,809 $-$63,410 $143,746 Total Realignment 2023-241/$1,120,551 $1,235,340 $2,752,123 $549,727 $689,473 $1,062,461 $7,409,675 Base Funding Sales Tax Account $749,929 $174,461 $2,535,901 $348,998 $444,822 $526,503 $4,780,614 Vehicle License Fee Account 370,622 1,119,731 216,223 200,729 185,798 535,958 2,629,061 Subtotal Base $1,120,551 $1,294,192 $2,752,123 $549,727 $630,620 $1,062,461 $7,409,675 Growth Funding Sales Tax Growth Account:$-$0 $67,688 $0 $-$0 $67,688 Caseload Subaccount -- (67,688)--- (67,688) General Growth Subaccount -0 -0 -0 0 Vehicle License Fee Growth Account - 3,911 -7,934 -9,350 21,195 Subtotal Growth $-$3,911 $67,688 $7,934 $-$9,350 $88,883 Total Realignment 2024-251/$1,120,551 $1,298,104 $2,819,811 $557,661 $630,620 $1,071,811 $7,498,558 1/ Excludes $14 million in Vehicle License Collection Account moneys not derived from realignment revenue sources. 1991 Realignment Estimate at 2024 May Revision $s in Thousands 2024-25 State Fiscal Year (Projected) 2022-23 State Fiscal Year (Actual) 2023-24 State Fiscal Year (Projected) Health TotalAmount Attachment C 67 2022-23 2022-23 Growth 2023-24 2023-24 Growth 2024-25 2024-25 Growth $3,336.8 $3,432.1 $3,445.7 637.3 9.5 646.8 1.4 648.2 6.4 489.9 340.8 489.9 386.0 489.9 385.0 1,893.2 71.4 1,964.7 10.3 1,974.9 47.9 76.7 4.8 81.5 0.7 82.2 3.2 239.7 9.5 249.2 1.4 250.6 6.4 Youthful Offender Block Grant Special Account (226.4) (235.4) (236.7) Juvenile Reentry Grant Special Account (13.2) (13.8) (13.8) 436.0 399.6 448.8 1,120.6 8.8 1,120.6 1.3 1,120.6 5.9 5,125.9 5,293.9 5,318.1 2,984.7 79.6 3,064.3 11.4 3,075.8 53.4 2,141.1 88.4 2,229.6 12.7 2,242.3 59.3 Women and Children's Residential Treatment Services (5.1) (5.1) (5.1) County Intervention Support Services Subaccount 4 (3.7) - - 176.9 25.4 118.6 $10,196.2 $10,271.6 $10,451.8 1.0625% Sales Tax 9,345.5 9,355.6 9,534.1 General Fund Backfill5 20.0 40.1 42.8 Motor Vehicle License Fee 830.7 875.9 874.9 $10,196.2 $10,271.6 $10,451.8 3Base Allocation is capped at $1,120.6 million. Growth does not add to the base. 5 General Fund backfill pursuant to Chapter 413, Statutes of 2014; Chapter 54, Statutes of 2018; Chapter 690, Statutes of 2019; Chapter 78, Statutes of 2020; Chapter 82, Statutes of 2021; Chapter 225, Statutes of 2022; Chapter 251, Statutes of 2022; Chapter 442, Statutes of 2023; Chapter 833, Statutes of 2023; and Chapter 56, Statutes of 2023. 2 Base Allocation is capped at $489.9 million. Growth does not add to the base. 2011 Realignment Estimate1 at 2024 May Revision Behavioral Health Subaccount Growth, Support Services Account Total and Growth District Attorney and Public Defender Subaccount Juvenile Justice Subaccount Growth, Law Enforcement Services Mental Health3 Law Enforcement Services ($ millions) Trial Court Security Subaccount Enhancing Law Enforcement Activities Subaccount2 Community Corrections Subaccount 4This chart reflects a fiscal year 2022-23 transfer of $3.7 million from Behavioral Health Subaccount Fund 3217 to the County Intervention Support Services Subaccount Fund 3325 pursuant to GOV 30027.10. Support Services Protective Services Subaccount 1This chart reflects estimates of the 2011 Realignment subaccount and growth allocations based on current revenue forecasts and in accordance with the formulas outlined in Chapter 40, Statutes of 2012 (SB 1020). Revenue Revenue Total Attachment C 68 Sales Tax VLF Alpine 61,552.34$ 126,673.40$ 21,465.00$ 125,814.44$ 13,150.00$ 112,664.44$ 13,150.00$ Amador 934,667.22$ 1,780,272.34$ 278,460.00$ 1,796,039.74$ 620,264.00$ 1,175,775.74$ 620,264.00$ Butte 6,834,771.95$ 12,122,978.57$ 724,304.00$ 11,809,232.71$ 5,950,593.00$ 5,858,639.71$ 5,950,593.00$ Calaveras 1,055,153.26$ 1,917,628.57$ -$ 1,783,669.10$ 913,959.00$ 869,710.10$ 913,959.00$ Colusa 857,278.43$ 1,542,841.91$ 237,754.00$ 1,582,724.60$ 799,988.00$ 782,736.60$ 799,988.00$ Del Norte 961,173.11$ 1,773,977.71$ 44,324.00$ 1,667,684.89$ 781,358.00$ 886,326.89$ 781,358.00$ El Dorado 3,901,260.35$ 7,026,361.00$ 704,192.00$ 6,979,088.01$ 3,535,288.00$ 3,443,800.01$ 3,535,288.00$ Glenn 935,364.36$ 1,716,622.49$ 58,501.00$ 1,626,292.71$ 787,933.00$ 838,359.71$ 787,933.00$ Humboldt 7,047,476.04$ 12,459,770.10$ 589,711.00$ 12,058,174.28$ 6,883,182.00$ 5,174,992.28$ 6,883,182.00$ Imperial 6,932,332.38$ 12,228,880.46$ 772,088.00$ 11,959,980.50$ 6,394,422.00$ 5,565,558.50$ 6,394,422.00$ Inyo 1,280,583.35$ 2,338,750.95$ 561,262.00$ 2,508,357.78$ 1,100,257.00$ 1,408,100.78$ 1,100,257.00$ Kings 3,360,155.16$ 5,988,228.05$ 466,273.00$ 5,888,793.73$ 2,832,833.00$ 3,055,960.73$ 2,832,833.00$ Lake 1,413,209.89$ 2,564,967.81$ 118,222.00$ 2,457,839.82$ 1,022,963.00$ 1,434,876.82$ 1,022,963.00$ Lassen 964,244.01$ 1,818,435.48$ 119,938.00$ 1,741,570.49$ 687,113.00$ 1,054,457.49$ 687,113.00$ Madera 3,361,465.18$ 5,931,970.53$ 81,788.00$ 5,625,134.23$ 2,882,147.00$ 2,742,987.23$ 2,882,147.00$ Marin 7,989,358.84$ 14,283,084.81$ 1,196,515.00$ 14,081,375.19$ 7,725,909.00$ 6,355,466.19$ 7,725,909.00$ Mariposa 536,785.69$ 990,377.66$ -$ 916,298.01$ 435,062.00$ 481,236.01$ 435,062.00$ Mendocino 2,092,298.01$ 3,762,637.00$ 347,945.00$ 3,721,728.01$ 1,654,999.00$ 2,066,729.01$ 1,654,999.00$ Modoc 589,799.29$ 1,089,664.03$ 70,462.00$ 1,049,955.19$ 469,034.00$ 580,921.19$ 469,034.00$ Mono 744,076.45$ 1,461,193.25$ 409,928.00$ 1,569,118.62$ 369,309.00$ 1,199,809.62$ 369,309.00$ Napa 3,327,416.97$ 5,965,139.52$ 546,957.00$ 5,903,708.10$ 3,062,967.00$ 2,840,741.10$ 3,062,967.00$ Nevada 2,097,469.76$ 3,759,967.75$ 96,375.00$ 3,572,287.51$ 1,860,793.00$ 1,711,494.51$ 1,860,793.00$ Plumas 924,992.96$ 1,630,428.37$ 66,295.00$ 1,573,029.80$ 905,192.00$ 667,837.80$ 905,192.00$ San Benito 1,240,016.51$ 2,266,658.16$ -$ 2,104,004.80$ 1,086,011.00$ 1,017,993.80$ 1,086,011.00$ Shasta 5,968,011.65$ 10,478,325.22$ 184,049.00$ 9,978,231.52$ 5,361,013.00$ 4,617,218.52$ 5,361,013.00$ Sierra 190,286.21$ 354,308.23$ 7,330.00$ 331,154.66$ 135,888.00$ 195,266.66$ 135,888.00$ Siskiyou 1,601,614.74$ 2,910,729.78$ 287,627.00$ 2,879,982.91$ 1,372,034.00$ 1,507,948.91$ 1,372,034.00$ Solano 8,297,426.37$ 14,698,376.89$ 115,800.00$ 13,866,961.95$ 6,871,127.00$ 6,995,834.95$ 6,871,127.00$ Sonoma 13,874,157.34$ 24,385,330.36$ 438,234.00$ 23,218,633.02$ 13,183,359.00$ 10,035,274.02$ 13,183,359.00$ Sutter 3,230,484.75$ 5,830,056.63$ 674,240.00$ 5,840,868.83$ 2,996,118.00$ 2,844,750.83$ 2,996,118.00$ Tehama 2,148,824.43$ 3,893,528.92$ 446,992.00$ 3,893,607.21$ 1,912,299.00$ 1,981,308.21$ 1,912,299.00$ Trinity 845,503.83$ 1,585,011.62$ 292,662.00$ 1,633,906.47$ 611,497.00$ 1,022,409.47$ 611,497.00$ Tuolumne 1,650,384.66$ 3,006,998.38$ 305,830.00$ 2,977,927.82$ 1,455,320.00$ 1,522,607.82$ 1,455,320.00$ Yuba 2,711,712.47$ 4,756,278.89$ 187,701.00$ 4,593,415.42$ 2,395,580.00$ 2,197,835.42$ 2,395,580.00$ Yolo 1,961,022.15$ 4,087,846.27$ 1,081,388.00$ 4,278,153.85$ 943,110.00$ 3,335,043.85$ 943,110.00$ CMSP Board 60,444,984.27$ 185,797,900.55$ -$ 147,745,730.89$ NA NA 246,242,884.82$ SUBTOTAL 162,367,314.40$ 368,332,201.66$ 11,534,612.00$ 325,340,476.83$ 90,012,071.00$ 87,582,674.94$ 336,254,955.82$ FY24/25 Interim Redirection Calculation CMSP 24-25 Realignment Maintenance of Effort 60% Realignment + 60% MOE Jurisdictional Risk Limitation Adjustment to CMSP Board Redirection Attachment C 69 Sales Tax VLF Sales Tax VLF Placer 1,975,132.71$ 3,951,131.62$ 368,490.00$ 1,223,351.24$ 3,475,002.90$ 368,490.00$ 3,776,852.60$ Sacramento 18,043,411.58$ 36,725,637.89$ 7,128,508.00$ 11,073,547.81$ 32,428,453.58$ 6,351,292.20$ 36,672,205.00$ Santa Barbara 4,479,502.50$ 9,490,733.55$ 3,794,166.00$ 2,695,565.51$ 8,405,681.53$ 1,620,782.07$ 9,354,610.87$ Stanislaus 6,141,978.33$ 12,599,483.05$ 3,510,803.00$ 3,756,009.76$ 11,132,596.16$ 2,173,736.46$ 12,549,118.71$ SUBTOTAL 30,640,025.12$ 62,766,986.11$ 14,801,967.00$ 18,748,474.32$ 55,441,734.17$ 10,514,300.74$ 62,352,787.18$ Sales Tax VLF Fresno*13,435,331.79$ 27,842,895.96$ 44.38%18,319,277.47$ Merced*3,234,466.01$ 6,311,601.13$ 43.41%4,143,947.74$ Orange*32,534,654.99$ 60,964,716.61$ 52.02%48,638,373.11$ San Diego*38,497,582.27$ 68,140,036.13$ 49.33%52,604,337.16$ San Luis Obispo*2,444,829.85$ 5,150,617.07$ 44.45%3,376,176.16$ Santa Cruz*2,993,931.59$ 6,429,825.38$ 46.61%4,392,413.13$ Tulare 5,762,301.18$ 11,265,815.70$ 47.88%10,227,575.35$ 678,162.92$ 9,549,412.43$ 7,639,529.94$ SUBTOTAL 98,903,097.68$ 186,105,507.98$ 10,227,575.35$ 678,162.92$ 9,549,412.43$ 139,114,054.70$ *Opted for Historical Percentage Sales Tax VLF Alameda 20,978,167.81$ 44,808,782.42$ 81.68%840,262,011.78$ 843,579,338.80$ (3,317,327.02)$ -$ Contra Costa 10,746,967.30$ 22,766,658.69$ 80.50%497,884,435.58$ 671,924,324.23$ (174,039,888.66)$ -$ Kern 9,106,803.46$ 18,958,901.38$ 66.26%356,458,071.39$ 256,154,579.94$ 100,303,491.44$ 18,596,336.03$ Los Angeles 166,968,365.66$ 358,624,464.54$ 83.00%5,921,752,718.53$ 6,735,619,657.03$ (813,866,938.50)$ -$ Monterey 4,341,783.00$ 9,223,695.28$ 51.19%263,595,924.22$ 243,509,627.06$ 20,086,297.16$ 6,944,168.33$ Riverside 17,285,692.63$ 35,455,168.01$ 84.44%655,462,592.29$ 792,793,268.99$ (137,330,676.70)$ -$ San Bernardino 20,450,025.27$ 39,567,902.78$ 58.54%546,751,140.17$ 409,967,142.15$ 136,783,998.02$ 35,134,495.08$ San Francisco 31,850,054.39$ 68,408,251.96$ 57.36%673,018,219.17$ 805,263,955.46$ (132,245,736.29)$ -$ San Joaquin 7,889,883.35$ 15,552,429.44$ 96.74%323,587,989.14$ 346,648,740.27$ (23,060,751.13)$ -$ San Mateo 7,475,614.81$ 15,888,709.22$ 80.82%212,876,477.17$ 245,722,828.79$ (32,846,351.61)$ -$ Santa Clara 18,083,936.71$ 38,208,452.00$ 85.00%1,501,327,585.80$ 1,483,152,554.76$ 18,175,031.04$ 14,540,024.83$ Ventura 7,084,698.26$ 14,849,401.93$ 80.62%334,164,209.13$ 218,426,268.73$ 115,737,940.40$ 17,683,271.57$ SUBTOTAL 322,261,992.64$ 682,312,817.65$ 12,127,141,374.37$ 13,052,762,286.22$ (925,620,911.85)$ 92,898,295.84$ 24-25 Interim Redirection 630,620,093.54$ Calculated Redirection DPH 24-25 Realignment Health Realignment Indigent Care % Total Revenue FY 24-25 Total Costs FY 24-25 Savings Calculated Redirection Article 13 Formula 24-25 Realignment Health Realignment Indigent Care % Total Revenue FY 24-25 Total Costs FY 24-25 Savings Redirection Article 13 60/40 24-25 Realignment Maintenance of Effort FY 10-11 Total Realignment MOE Capped at 14.6% of 10-11 Realignment Attachment C 70 2024 Contra Costa County Bills of Interest BILL TITLE AUTHOR SUMMARY LAST STATUS UPCOMING DATES POSITION 1 AB 817 Open Meetings: Teleconferencing: Subsidiary Body Pacheco (D) Provides that the Ralph M. Brown Act requires, with specified exceptions, each legislative body of a local agency to provide notice of the time and place for its regular meetings. Provides that existing law authorizes the legislative body of a local agency to use alternate teleconferencing provisions during a proclaimed state of emergency. Authorizes, until specified date, a subsidiary body to use alternative teleconferencing provisions and imposes requirements for notice, agenda, and public participation. 05/01/2024: To SENATE Committees on LOCAL GOVERNMENT and JUDICIARY.Support 2 AB 1820 Housing Development Projects: Applications: Fees Schiavo (D) Authorizes a development proponent that submits a preliminary application for a housing development project to request a preliminary fee and exaction estimate. Requires the local agency to provide the estimate within a specified number of business days of the submission of the preliminary application. Specifies that the preliminary fee and exaction estimate is for informational purposes only and does not affect the scope, amount, or time of payment of any fee or exaction. 05/15/2024: From ASSEMBLY Committee on APPROPRIATIONS: Do pass. 3 AB 1957 Public Contracts: Best Value Construction Contracting Wilson (D) Provides that existing law establishes a pilot program to allow the Counties of Alameda, Los Angeles, Monterey, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Solano, and Yuba to select a bidder on the basis of best value for construction projects in excess of a specified amount. Authorizes any county of the State to utilize this program and extends the operation of provisions until specified date. 05/09/2024: In ASSEMBLY. Read third time. Passed ASSEMBLY. *****To SENATE. 4 AB 1961 End Hunger in California Act of 2024 Wicks (D) Requires the Strategic Growth Council, in consultation with specified entities, to appoint and convene the End Hunger in California Master Plan Task Force to make recommendations for future comprehensive strategies aimed at addressing access to healthy and culturally relevant food for all Californians. Requires the task force to meet at least quarterly and to be composed of up to a specified number of members from agencies and with specified knowledge and expertise in various food-related subject matters. 05/15/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File. 5 AB 1970 Mental Health: Black Mental Health Navigator Jackson (D) Requires the Department of Health Care Services to develop criteria for a specialty certificate program and specialized training requirements for a Black Mental Health Navigator Certification. Requires the department to collect and regularly publish data, not less than annually, including, but not limited to, the number of individuals certified, including those who complete a specialty certificate program and the number of individuals who are actively employed in a community health worker role. 05/01/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 6 AB 1999 Electricity: Fixed Charges Irwin (D) Provides that under existing law, the Public Utilities Commission may authorize fixed charges for any rate schedule on an income-graduated basis. Prohibits modifications to the amount of the income-graduated fixed charge from exceeding changes in inflation. Requires the commission to adopt any modification to an existing fixed charge for the collection of a reasonable portion of the fixed costs of providing electrical service to residential customers in a stand-alone proceeding. 05/15/2024: From ASSEMBLY Committee on UTILITIES AND ENERGY: Do pass to Committee on APPROPRIATIONS. Support 7 AB 2089 Local Government: Collection of Demographic Data Holden (D) Requires a city, county, or city and county, when collecting demographic data as to the ancestry or ethnic origin of employees of the city, county, or city and county, to include the additional collection categories and tabulations for specified Black or African American groups. 04/24/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date stateNetTracking_20240515_06_42 1 Attachment D 71 2024 Contra Costa County Bills of Interest BILL TITLE AUTHOR SUMMARY LAST STATUS UPCOMING DATES POSITION 8 AB 2132 Health Care Services Low (D) Requires an adult patient receiving primary care services in a facility, clinic, unlicensed clinic, center, office, or other setting to be offered a tuberculosis (TB) risk assessment and TB screening test, if TB risk factors are identified, to the extent these services are covered under the patients health insurance, unless the health care provider reasonably believes certain conditions apply. Requires the health care provider to offer the patient follow up health care. 04/10/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date Support 9 AB 2200 Guaranteed Health Care for All Kalra (D) Provides for the California Guaranteed Health Care for All Act. Creates the California Guaranteed Health Care for All Program, or CalCare, to provide comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of all residents of the State. Provides that CalCare would be a health care service plan subject to the Knox-Keene Health Care Service Plan Act of 1975. Appropriates funds. 05/15/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File. 10 AB 2236 Solid Waste: Reusable Grocery Bags: Plastic Film Bauer-Kahan (D) Revises the single-use carryout bag exception to include a bag a bag provided to a customer before the customer reaches the point of sale, that is designed to protect a purchased item from damaging or contaminating other purchased items in a checkout bag, or to contain an unwrapped food item. Requires a reusable grocery bag sold by a store to a customer at the point of sale to meet different requirements, including that it not be made from plastic film. 04/10/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 11 AB 2263 The California Guaranteed Income Study and Funding Act Friedman (D) Provides for the California Guaranteed Income Study and Funding Act. Establishes the Guaranteed Income Study and Funding Act Coordinating Council. Requires the council to seek to attain, among other things, the objective of examining the feasibility, benefits, and challenges of scaling up permanent guaranteed income programs to reach a larger proportion of the State's socially and economically vulnerable populations, focusing on regions with a high cost of living. 05/08/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 12 AB 2265 Animals: Euthanasia McCarty (D) Provides that existing law imposes various requirements relating to animals on public animal control agencies and public animal shelters. Defines Hayden's Law to mean several of those provisions relating to animals. Requires a public animal control agency or public animal shelter that seeks to adopt a policy, practice, or protocol that raises the potential for conflict with Hayden's Law to first give notice to the city or county body that funds the agency or shelter. 05/01/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 13 AB 2284 County Employees' Retirement: Compensation Grayson (D) Relates to the County Employees Retirement Law of 1937 and the California Public Employees' Pension Reform Act of 2013. Authorizes a retirement system, to the extent it has not defined grade, to define grade to mean a number of employees considered together because they share similarities in job duties, schedules, unit recruitment requirements, work location, collective bargaining unit, or other logical work-related group or class. 04/22/2024: In ASSEMBLY. Read second time. To third reading. 14 AB 2302 Open Meetings: Local Agencies: Teleconferences Addis (D) Relates to existing law which imposes prescribed restrictions on remote participation by a member of a legislative body of a local agency under alternative teleconferencing provisions. Revises the limits, instead prohibiting such participation for more than a specified number of meetings per year, based on how frequently the legislative body regularly meets. 05/09/2024: In ASSEMBLY. Read third time. Passed ASSEMBLY. *****To SENATE. stateNetTracking_20240515_06_42 2 Attachment D 72 2024 Contra Costa County Bills of Interest BILL TITLE AUTHOR SUMMARY LAST STATUS UPCOMING DATES POSITION 15 AB 2330 Endangered Species: Incidental Take: Wildfire Holden (D) Requires the Department of Fish and Wildlife to notify a local agency within a specified number of days of receipt of a plan to conduct wildlife preparedness activities on land designated as a fire hazard severity zone if an incidental take permit or other permit is needed, or if there are other considerations, exemptions, or streamlined pathways that the wildfire preparedness activities qualify for, including, but not limited to, the California Vegetation Treatment Program. 05/08/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 16 AB 2404 State and Local Public Employees: Labor Relations Lee (D) Provides that it is not unlawful or a cause for discipline or other adverse action against a public employee for that public employee to refuse to enter property that is the site of a primary strike, perform work for a public employer involved in a primary strike, or go through or work behind a primary strike line. Prohibits a public employer from directing a public employee to take those actions. Authorizes recognized employee organization to inform employees of and encourage them to exercise these rights. 05/08/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 17 AB 2421 Employer-Employee Relations: Confidential Communication Low (D) Prohibits a local public agency employer, a state employer, a public school employer, a higher education employer, or the district from questioning any employee or employee representative regarding communications made in confidence between an employee and an employee representative in connection with representation relating to any matter within the scope of the recognized employee organization's representation. 04/24/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 18 AB 2474 Retirement: County Employees Retirement Law of 1937 Lackey (R) Authorizes the board of retirement for the County of Los Angeles to permit a person entitled to receive benefit payments to have them deposited into a prepaid account. Requires the retirement system for the County of Los Angeles, no later than the specified date, to submit a report to specified legislative committees that includes certain information regarding the implementation of these provisions. 05/08/2024: To SENATE Committee on LABOR, PUBLIC EMPLOYMENT AND RETIREMENT. 19 AB 2489 Local Agencies: Contracts for Special Services Ward (D) Requires a county board of supervisors or a representative, at least a specified number of months before beginning a procurement process to contract with persons for special services that are currently, or were previously, performed by employees of the county represented by an employee organization, to notify, in writing, the exclusive employee representative of the workforce affected. Provides that this notice requirement does not apply in the event of an emergency. 05/15/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.Oppose 20 AB 2502 Public Contracts: Emergencies Rivas (D) Defines an emergency as an immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services caused by the impacts of homelessness. 03/04/2024: To ASSEMBLY Committee on LOCAL GOVERNMENT. 21 AB 2557 Local Agencies: Contracts for Special Services Ortega (D) Provides that existing law authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Requires each person who enters into a contract for special services with the board of supervisors to submit quarterly performance reports every specified number of days to the board of supervisors and the exclusive representative of the employee organization. 05/08/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date Oppose 22 AB 2561 Local Public Employees: Vacant Positions McKinnor (D) Provides that the Meyers-Milias-Brown Act authorizes local public employees to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. Requires each public agency with bargaining unit vacancy rates exceeding a specified percent for more than a specified number of days to meet and confer with a representative of the recognized employee organization to implement a plan to fill all vacant positions. 05/01/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date Oppose stateNetTracking_20240515_06_42 3 Attachment D 73 2024 Contra Costa County Bills of Interest BILL TITLE AUTHOR SUMMARY LAST STATUS UPCOMING DATES POSITION 23 AB 2631 Local Agencies: Ethics Training Fong M (D) Requires the Fair Political Practices Commission, in consultation with the Attorney General, to create, maintain, and make available to local agency officials an ethics training course, as specified. 04/10/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 24 AB 2710 Peace Officers: Active Shooter Incidents Lackey (R) Requires the Commission on Peace Officer Standards and Training to convene a panel of law enforcement experts to report to the Legislature and the commission, by specified date, specified topics related to active shooter incidents, including successful trainings and response protocols that have been demonstrated in active shooter incidents and the use of school resource officers on campus for threat prevention, detection, and assessment. 05/08/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 25 AB 2751 Employer Communications During Nonworking Hours Haney (D) Requires a public or private employer to establish a workplace policy that provides employees the right to disconnect from communications from the employer during nonworking hours, with certain exceptions. Defines the right to disconnect. Requires nonworking hours to be established by written agreement between an employer and employee. Authorizes an employee to file a complaint of a pattern of violation of the bill's provisions with the Labor Commissioner, punishable by a specified civil penalty. 05/08/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 26 AB 2882 California Community Corrections Performance McCarty (D) Adds a representative of a community-based organization with experience in successfully providing behavioral health treatment services to persons who have been convicted of a criminal offense and a representative of a Medi-Cal managed care plan that provides the Enhanced Care Management benefit to the membership of a local Community Corrections Partnership. 04/17/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 27 AB 2973 Emergency Services Hart (D) Authorizes a county board of supervisors or a local emergency medical services agency to provide or support the provision of EMS to persons located within the county. Requires a county board of supervisors or a local EMS agency to adopt a written policy setting forth specified requirements for an emergency ambulance services provider in order to enter into a contract with a provider for emergency ambulance services. 04/15/2024: In ASSEMBLY. Read second time and amended. Re-referred to Committee on HEALTH. 28 AB 3222 Drug Court Success Incentives Pilot Program Wilson (D) Authorizes the superior courts in the Counties of Sacramento, San Diego, Contra Costa, and Solano to conduct a pilot program to provide specific supportive services to adult defendants who participate in the county's drug court. Requires the Judicial Council to administer the program and authorizes the council to establish guidelines and reporting requirements for the participating drug courts. 05/08/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 29 AB 3233 Oil and Gas: Operations: Restrictions: Local Authority Addis (D) Provides that existing law requires the operator of a well to file a written notice of intention to commence drilling with the State Oil and Gas Supervisor or district deputy. Authorizes a local entity, by ordinance, to limit or prohibit oil and gas operations or development in its jurisdiction, notwithstanding any other law or any notice of intention, supplemental notice, well stimulation permit, or similar authorization issued by the supervisor or district deputy. 05/08/2024: In ASSEMBLY Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date Support 30 SB 294 Health Care Coverage: Independent Medical Review Wiener (D) Requires a health care service plan or disability insurer that provides coverage for mental health or substance use disorders to treat a modification, delay, or denial issued in response to an authorization request for coverage of treatment for a mental health or substance use disorder for an insured up to a specified age as if the modification, delay, or denial is also a grievance submitted by the enrollee or insured. 04/29/2024: To ASSEMBLY Committee on HEALTH. stateNetTracking_20240515_06_42 4 Attachment D 74 2024 Contra Costa County Bills of Interest BILL TITLE AUTHOR SUMMARY LAST STATUS UPCOMING DATES POSITION 31 SB 402 Involuntary Commitment Wahab (D) Provides that the Lanterman-Petris-Short Act authorizes the involuntary commitment and treatment of persons with specified mental disorders. Provides that under the act, when a person, as a result of a mental health disorder, is a danger to self or others, or gravely disabled, the person may, upon probable cause, be taken into custody by specified individuals and placed in a facility for evaluation and treatment. Authorizes a person to be taken into custody by a licensed mental health professional. 04/29/2024: To ASSEMBLY Committees on HEALTH and JUDICIARY. 32 SB 937 Development Projects: Permits and Other Entitlements Wiener (D) Provides that the Permit Streamlining Act requires a public agency that is the lead agency for a development project to approve or disapprove that project within specified time periods. Extends by a specified number of months the period for the expiration, effectuation, or utilization of a housing entitlement for a priority residential development project that was issued before specified date, and that will expire before specified date, with certain exceptions. 04/30/2024: In SENATE. Read second time. To third reading. 33 SB 964 Property Tax: Tax-Defaulted Property Sales Seyarto (R) Relates to the sale to certain entities of a property that has been tax defaulted for 5 years or more in an applicable county. Authorizes a property or property interest to be offered for sale under provisions authorizing a sale to certain entities that has not been offered for sale under certain provisions if the State Board of Equalization conducts a property valuation that shows that the property or property interest is worth less than the amount of the defaulted debt. 05/13/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 34 SB 1011 Encampments: Penalties Jones (R) Prohibits a person from sitting, lying, sleeping, or storing, using, maintaining, or placing personal property upon a street or sidewalk if a homeless shelter, as defined, is available to the person. 04/16/2024: In SENATE Committee on PUBLIC SAFETY: Reconsideration granted. 35 SB 1013 Taxation: Property Tax Assistance Bradford (D) Establishes the Property Tax Assistance for Descendants of Enslaved Persons Program for purposes of making, upon appropriation by the Legislature, moneys available to persons who meet specified criteria for purposes of providing financial assistance equal to the total amount of property taxes paid on a residential dwelling, or a specified amount, whichever is less, and as subject to specified limitations. 05/13/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 36 SB 1017 Available Facilities for Inpatient Treatment Eggman (D) Requires the Department of Health Care Services, with the Department of Public Health and the Department of Social Services, and by conferring with specified stakeholders, to develop a solution to collect, aggregate, and display information about beds in specified types of facilities, including licensed community care facilities and licensed residential alcoholism or drug abuse recovery or treatment facilities, identify the availability of inpatient and residential mental health or substance use treatment. 04/15/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 37 SB 1031 San Francisco Bay Area: Local Revenue Measure Wiener (D) Requires the Transportation Agency to select a transportation institute to conduct an assessment that analyzes the benefits and disbenefits to riders, and the administrative, financial, legal, contractual, and governance feasibility, of various forms of consolidation and enhanced coordination among transit agencies that are located in the 9-county San Francisco Bay Area. Requires the Agency to develop a report of recommendations that, among other things. 05/13/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date stateNetTracking_20240515_06_42 5 Attachment D 75 2024 Contra Costa County Bills of Interest BILL TITLE AUTHOR SUMMARY LAST STATUS UPCOMING DATES POSITION 38 SB 1032 Housing Finance: Portfolio Restructuring Padilla (D) Provides that existing law authorizes the Department of Housing and Community Development to monitor and fund various multifamily housing loans. Requires that projects receiving loan forgiveness meet specified requirements, including that the projects maintain the same number of affordable units at the same affordable housing cost as provided in the project's regulatory agreement. 04/08/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 39 SB 1034 California Public Records Act: State of Emergency Seyarto (R) Revises the unusual circumstances under which the time limit for an agency to determine whether a records request seeks copies of disclosable public records in the possession of the agency, and to notify the person of the determination, may be extended to include the need to search for, collect, appropriately examine, and copy records during a state of emergency when the emergency has affected the agency's ability to timely respond to requests, with specified exceptions. 05/06/2024: To ASSEMBLY Committee on JUDICIARY. 40 SB 1057 Juvenile Justice Coordinating Council Menjivar (D) Provides that existing law requires a juvenile justice coordinating council to consist of certain members. Requires each county juvenile justice coordinating council to, at a minimum, consist of at least a specified percent community representatives with the remainder of the seats allocated in a specified manner. Requires, if a county board of supervisors or a county's juvenile coordinating council's bylaws established term limits, that all individuals of the council be subject to the term limits. 05/13/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date Oppose 41 SB 1060 Property Insurance Underwriting: Risk Models Becker (D) Requires, if a property insurer uses risk models for underwriting purposes, the risk models to account for wildfire risk reduction associated with hazardous fuel reduction, home hardening, defensible space, and fire prevention activities. Requires an insurer, beginning on the specified date, and on or before each specified date thereafter, to provide to the Department of Insurance information necessary to ensure compliance with those risk model requirements. 05/13/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 42 SB 1072 Local Government: Proposition 218: Remedies Padilla (D) Provides for procedures and parameters for local compliance with the requirements of the State Constitution for assessments and property- related fees. Requires a local agency, if a court determines that a fee or charge for a property-related service violates the provisions of the State Constitution relating to fees and charges, to credit the amount of the fee or charge attributable to the violation against the amount required to provide the service, unless a refund is explicitly provided for by statute. 05/02/2024: In SENATE. Read second time. To third reading. 43 SB 1082 Augmented Residential Care Facilities Eggman (D) Requires the Department of Health Care Services, jointly with the County Behavioral Health Directors Association of California, to implement a certification program to provide augmented services to adults with serious mental illness in homelike community settings. Requires those settings to be licensed by the Department of Social Services as an augmented residential care facility. Requires an ARCF to, among other requirements, conform with specified provisions of the State Community Care Facilities Act. 04/29/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 44 SB 1124 Deceptive Practices: Service Members and Veterans Menjivar (D) Expands the definition of public social services to also include other veterans benefits. Expands the definition of an unreasonable fee to include a fee charged with respect to federal veterans benefits that exceeds the amount that could be charged for those services by an attorney or claims agent accredited by the United States Department of Veterans Affairs. 05/13/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date stateNetTracking_20240515_06_42 6 Attachment D 76 2024 Contra Costa County Bills of Interest BILL TITLE AUTHOR SUMMARY LAST STATUS UPCOMING DATES POSITION 45 SB 1159 Environmental Quality Act: Roadside Wildfire Risk Dodd (D) Relates to categorical exemptions to the requirements of the California Environmental Quality Act. Requires the Office of Planning and Research to evaluate, and the Secretary of the Natural Resources to consider, the inclusion of roadside projects no more than a specified number of road miles from a municipality or census- designated place that are undertaken solely for the purpose of wildfire risk reduction in the classes of projects subject to a categorical exemption. 05/13/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date Support 46 SB 1245 In-Home Supportive Services: Health Professional Ochoa Bogh (R) Defines licensed health care professional for specified purposes to mean any person who engages in acts that are the subject of licensure or regulation under specified provisions of the Business and Professions Code or under any initiative act referred to in those specified provisions. 04/15/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date Support 47 SB 1254 CalFresh: Enrollment of Incarcerated Individuals Becker (D) Requires the State Department of Social Services to partner with the Department of Corrections and Rehabilitation and county jails to enroll otherwise eligible applicants for the CalFresh program to ensure that an applicant's benefits may begin before the reentry of the applicant into the community from the State prison or county jail. Requires the department to create a workgroup. Requires the workgroup to create a report by the specified date with their recommendations for a State reentry process. 05/06/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date 48 SB 1317 Inmates: Psychiatric Medication: Informed Consent Wahab (D) Provides that existing law prohibits, with specified exceptions, a person sentenced to imprisonment in a county jail from being administered any psychiatric medication without prior informed consent. Extends these provisions. Requires any county that, between specified dates, administers involuntary medication to any inmate awaiting arraignment, trial, or sentencing, to prepare and submit a report to the Legislature. 05/14/2024: In SENATE. Read second time. To third reading. 49 SB 1432 Health Facilities: Seismic Standards Caballero (D) Authorizes the State Department of Public Health to grant an extension of the deadline for substantial compliance with seismic safety regulations or standards to the specified date for any hospital building for which the hospital owner submits specified items to the department by specified dates. Authorizes the department to grant a different extension to the deadline for substantial compliance with seismic safety regulations or standards if the owner has demonstrated one or more specified requirements. 05/06/2024: In SENATE Committee on APPROPRIATIONS: To Suspense File.05/16/2024: Hearing Date Support stateNetTracking_20240515_06_42 7 Attachment D 77