from Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
Play to Save Redevelopment Funds
On December 29, 2011, the California Supreme Court ruled in the redevelopment litigation -- CRA v. Matosantos – upholding ABX1 26 which abolished redevelopment agencies, but striking down companion legislation that would have allowed agencies to survive if they contribute money to the State. As part of the Supreme Court’s ruling, agencies are to be dissolved on February 1, 2012. A coalition of labor, business, local government, public safety and affordable housing advocates is working with members of the Legislature to pass SB 659 and temporarily postpone the February 1, 2012 dissolution deadline in order to preserve the ability to develop a new program.
SB 659 will temporarily postpone the February 1 dissolution deadline allowing time to develop a new neighborhood renewal program.If agencies are dissolved on February 1, 2012, successor agencies are responsible for winding down all assets, properties, contracts, leases, records, buildings, and equipment of the former redevelopment agencies, and laying off workers – actions that are difficult to do in short time frame.
Senate leader Darrel Steinberg this week said that he may have problems with the proposal since delaying RDA shutdowns would mean local schools would miss out on a portion of property taxes that will be redirected from the closed agencies. The Senate pro Tem said, though, that protecting one function of RDAs is likely to get his support: affordable housing. Steinberg has a bill to allow dollars already earmarked for low and moderate income housing, perhaps as much as $2 billion, to remain in place. On the broader issue, he suggested it's time to think differently about local economic development. Steinberg's idea is one that would combine two of his long-sought changes to local communities: more regional tax sharing and more "sustainable" development. A decade ago, then Assembly Member Steinberg pushed legislation to require sales tax sharing between governments in the Sacramento region -- a pilot program of sorts to keep cash-starved local governments from battling over projects like big box stores. He has also been the author of legislation that tied development with transportation.
To see members of the coalition and/or to join the coalition, click on the links below:
SB 659 Coaltion List
SB 659 Coalition Sign-Up Form
Enforcement Bill Passes Committee
SB 691 (Lieu), which adds the Contractors State License Board (CSLB) to the list of authorized governmental entities that EDD may share information with for the purposes of aiding any specific workers' compensation fraud investigation, passed the Senate Labor Committee this week. Sponsored by the CSLB, SB 691 seeks to permit the Employment Development Department to share employment data and information with the CSLB for the purposes of investigating any specific workers' compensation fraud investigation. Contractors such as roofers and electricians face some of the highest workers' compensation premiums due to injuries, but also suffer from some of the most significant rate distortion due to misreporting and underreporting. While the CSLB must ensure that licensed contractors appropriately maintain workers' compensation coverage, they do not currently have statutorily guaranteed access to EDD's databases to investigate possible workers' compensation fraud.
The committee also defeated two bills authored by Senator Tom Berryhill and sponsored by Associated Builders and Contractors (ABC) that would have made change to prevailing wage laws. SB 725 and SB 727 would have made numerous and major changes to current prevailing wage law as it relates to determining rates and dollar thresholds.
AB 890 (Olsen)was passed by an Assembly Committee and exempts from the California Environmental Quality Act (CEQA) a project or activity undertaken by a city or county to improve public safety within an existing road bed, provided the project or activity is not for the purpose of increasing traffic capacity.
AB 249 (Bill Berryhill)was held in an Assembly committee and will be reintroduced as a new bill to give additional time to resolve numerous outstanding issues. The bill sought to address a complex provision of law that would eliminate a person's ability to sue to recover all compensation for construction work performed by an "unlicensed contractor" whose license has lapsed, unless the lapse is due to the license being suspended or revoked. More on this issue later this year.
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