SB 747 Narrowed by Forced Amendments in Senate Housing Committee
Discussions/Negotiations over Multiple SLA Bills Expected
SB 747 (Caballero) – a bill protecting use of public land for economic development and making helpful changes to the Surplus Land Act (SLA) encountered difficulties Monday in the Senate Housing Committee, when the Committee’s chair, Senator Scott Wiener (D-San Francisco), forced the author to take significant amendments that narrowed the scope of several key provisions. While the amendments are not yet in print, CALED understands them to be as follows:
- Requiring local agencies to have a state approved housing element and a Prohousing designation from the Department of Housing and Community Development (HCD) in order to use Economic Opportunity Law to acquire and dispose of property to create an economic opportunity.
- Reducing the author’s proposed exemption from the Surplus Land Act (SLA) for leases of less than 35 years to 15 years.
- Removing a requirement that local administrative determinations of exempt surplus land are “presumed conclusive” unless a prejudicial abuse of discretion is established.
Thank you to CALED Past Chair Aaron Laurel, City Manager, City of West Sacramento for providing nuanced testimony to advocate for economic development in light of the changes. Other local government and district supporters also expressed concerns in testimony at the hearing about the severity of the amendments. While many helpful SLA clarifications benefitting local governments remain in the bill, when the amendments come into print, we will evaluate whether the amendments affecting Economic Opportunity Law and lease provisions are too narrow to be helpful. If the provisions are deemed too narrow, CALED will request removal from the bill. There are several SLA bills moving through the legislature and a larger context that for discussion on this issue. Please see that detail below.
Next Steps:
- Patience Needed on SB 747. CALED and other local agency supporters of SB 747 were disappointed with the amendments taken in Senate Housing, still CALED encourages its members to have some patience. Senator Caballero acknowledged in the hearing that the amendments created difficulties for her supporters; much in the bill will likely continue to change.
- Oppose AB 480: We encourage members to register your opposition on the harmful SLA bill, AB 480 (Ting). Significant opposition is needed. CALED’s letter is here
- Reach out to your legislator. Make sure your legislator is aware of challenges and delays created by SLA, and that they are looking out for your interests in the various SLA bills pending in the Legislature. While SB 747 takes the broadest approach, there are several other bills seeking individual exemptions. If there are specific challenges you face, your legislator needs to know about it.
- Expect a Larger Discussion over the SLA: With multiple bills moving, CALED expects that larger discussions may begin over the SLA.
Larger Context:
We encourage you to keep in mind how yesterday’s actions in the Senate Housing Committee fit within the larger legislative policy debates and additional negotiations over the SLA in the Legislature.
- Last year, Senator Caballero, as chair of the Senate Governance and Finance Committee, stopped AB 2357 (Ting), a bill strongly opposed by CALED because it would have further bolstered HCD authority over local agencies through the SLA. Assembly Member Ting, however, has reintroduced that bill as AB 480, co-authored by Senator Umberg. AB 480 is now proceeding in the Assembly, but would still have to be heard in Senator Caballero’s committee sometime in late June/early July. CALED and other local agencies strongly oppose AB 480.
- Senator Caballero now has her own bill, SB 747, intended to be helpful to local agencies on economic development and the SLA. Now that it passed the major hurdle of Senate Housing, it will go next to Senate Appropriations, and then proceed to the Assembly.
- Senator Tom Umberg (D-Santa Ana), authored several bills last year based on his concerns with the conduct of officials in the City of Anaheim concerning the proposed development of city properties adjacent to Angels Stadium. The controversy included allegations that the city attempted to evade compliance with the SLA, investigations by the FBI, and the resignation of the former mayor. Senator Umberg has two bills, SB 34, which would prohibit any local agency within Orange County from disposing of property which HCD alleges is in violation of the SLA. SB 229, requires increased public transparency and a public hearing when a local agency receives a notice of violation from HCD. CALED is opposed to SB 34, because it is overly punitive to all Orange County local agencies over the alleged actions of one, and lacks necessary due process. CALED has an Oppose, Unless Amended position on SB 229, because it defines “disposal” to include leases, when–despite HCD’s guidelines–it is not clear in statute that leases are subject to the SLA.
- Several individual SLA exemption bills are also moving:
- AB 457 (Patterson) Provides an SLA exemption for a parcel of less than two acres identified for future roadway development.
- AB 837 (Alvarez) Provides an SLA exemption for a parcel in the City of Chula Vista acquired for educational and other uses.
- AB 1734 (Jones-Sawyer) Provides an SLA exemption for emergency shelters, transitional housing, supportive housing and affordable housing meeting specified conditions.
Please reach out to the CALED team if you have any questions or comments.
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