Legislative Update 

October 2023 

By Craig Benedetto & Marshall Anderson, Legislative Advocates 

CARLSBAD CAP UPDATE, REACH CODES TO COME BEFORE CITY COUNCIL NOVEMBER 7

The City of Carlsbad is renewing efforts to update its Climate Action Plan (CAP) with a presentation planned for the City Council on November 7th. The lightly-detailed draft action plan, which can be found HERE, broadly references new energy efficiency requirements for residential and non-residential buildings (both existing and new), upgrading the City’s Transportation Demand Management Ordinance, parking demand management requirements, new energy use benchmarking requirements, and new waste management diversion requirements, among numerous others. Staff’s intent at the hearing is to present their draft, some early comments from stakeholders (noting that the public input period ends well after the city council hearing) and seek direction on the draft plan, which could come back to them for formal adoption early in 2024.  BOMA plans on participating during the November 7th hearing and has reached out to City of Carlsbad staff for more information. In the interim, impacted and interested BOMA members are strongly encouraged to provide input HERE.

SAN DIEGO MINIMUM WAGE TO GO UP

The City of San Diego’s Compliance Department announced this week that the minimum wage in the city will be adjusted up to $16.85 per hour.  The City had previously approved a minimum wage increase, that included annual adjustments.  The minimum wage is adjusted based on inflation.  It applies to employees in the city who perform at least two hours of work in one or more calendar weeks of the year.  The new wage level will be effective on January 1, 2024.  To learn more, please CLICK HERE.  

GOVERNOR SIGNS/VETOES SERIES OF BILLS 

• Mental Health Bond: Governor Newsom signed two major pieces of legislation in an attempt to transform the state’s mental health system.  The measures are being touted as an additional means of helping address the underlying causes of homelessness.  Together, they would place on the primary ballot for voter approval a bond to fund an expansion of the mental health care system and be paid for by a tax on millionaires approved in 2004 by the voters.  That tax has been used to fund mental health programs. The measure, if approved by voters, would direct that 2/3rds of the revenue from the tax would pay for housing and services for the chronically homeless and who also have mental health, drug and alcohol addiction issues.  To learn more, please CLICK HERE.

• Expansion of layoff noticing period vetoed: Governor Newsom vetoed a measure that would have extended the notice period, known as WARN, for impending layoffs companies are required to give employees in the state.  It would have also expanded these rules to contract workers.  Citing the risk of liabilities on employers who can’t possibly know if their actions will cause sub-contractor layoffs, the Governor also noted in his veto message his concern over the expansion of WARN requirements to chain businesses.  To read the veto message, please CLICK HERE.  

• “Junk fee” bill approved: Governor Newsom approved this week a measure that would prohibit companies from advertising the prices of goods or services that don’t include mandatory “junk fees”.  Proponents of the measure, including Attorney General Rob Bonta, have cited mandatory fees charged on hotel rooms and event/concert tickets as the justification behind the measure.  While not banning the charging of the fees, the bill requires that all fees be disclosed in advertised pricing.  To read Bonta’s statement and the language of the bill, please CLICK HERE.

•  Bill that would give striking workers unemployment pay vetoed: Governor Newsom vetoed a measure that would have given striking workers in California unemployment benefits.  He vetoed the bill because of the debt load the unemployment benefits is projected to have without this additional cost.  Newsom is being assailed by labor advocates for this veto.  The bill, SB 799, was carried by Senator’s Portantino, Durazo and Holden.  To read the bill, please CLICK HERE.  

• Residential eviction protections signed: Governor Newsom signed SB 567 (D-Durazo) into law.  The law is intended to enhance protections for renters and update a 2019 law that created rules around evictions.  The new law changes how “no fault” evictions will work, the definition of “substantial remodels”, owner move in and landlord reporting requirements.  The new law goes into effect April 1, 2024.  To read more, please CLICK HERE. 

• New paid sick leave law signed: Governor Newsom signed into law this week a measure that increases the number of paid sick leave days available to California employees.  The new law would provide for five paid sick days up from the current three.  SB 616 (D-Lena Gonzales) will increase accrual and carry over amounts.  To learn more, please CLICK HERE. 

ESCONDIDO RAISES WATER RATES

The Escondido City Council recently approved a series of water rate increases, starting on January 1, 2024, and continuing for the next five years. The change marks the highest hike in over a decade. The city's utility department argued for the increase to maintain water infrastructure and cover the increased costs of importing water. The rate adjustments will vary each year, with an 8% increase starting in January 2024, followed by 7.5% increases in 2025 and 2026, and 6.5% increases in 2027 and 2028. Wastewater and recycled water rates will also see increases, with a 3.5% hike beginning on January 1, 2024, and subsequent increases in the following years. To learn more, click HERE.

SANDAG BOARD REMOVES VEHICLE MILEAGE CHARGE, INITIATES SEARCH FOR NEW CEO

The SANDAG Board of Directors voted to remove the controversial mileage charge from its regional transportation planning documents.  The removal follows years of acrimony over this method of helping pay for planned transportation projects in our region.  Since the charge was already stripped from the 2021 Regional Transportation Plan (RTP) this would apply to the 2025 RTP and subsequent RTP’s which are prepared every four years.  The decision also prevents staff and board members from pursuing state legislation to mandate such a charge.  Although these prohibitions are in place, it’s unclear whether they can be legally enforced.  As originally contemplated, the plan would have placed a 3.3 cent per mile traveled charge by 2030 and would have raised an estimated $14.2 billion.  

The board has also formally initiated the process to replace its current CEO, Hasan Ikhrata, who announced his resignation effective December 29th. The board voted 16-3 to approve an eight-month-long search with the goal of appointing a permanent CEO in May 2024. As part of the process, an Interim CEO will be named in December so there will continue to be leadership while the selection process moves forward. For key dates and to learn more about the recruitment process, click HERE. 

STATE AND REGIONAL LAW ENFORCEMENT ENTITIES TO STRENGTHEN FENTANYL ENFORCEMENT

The California Department of Justice is partnering with San Diego's multi-agency Fentanyl Abatement and Suppression Team (FAST) to combat the smuggling and distribution of fentanyl. San Diego has seen a significant rise in fentanyl-related fatalities, with two-thirds of the city's 624 fatal overdoses last year attributed to fentanyl. The partnership aims to address the crisis from both the law enforcement and public health perspectives and is funded in part by national settlements with the opioid industry. BOMA has been monitoring efforts like this, given the connection to homelessness and conditions on the streets, which impact our members and their tenants, guests, and customers.  To learn more, click HERE. 

SAN DIEGO DSD TO OFFER DISCRETIONARY PROJECT PRO-CERTIFICATION TRAINING

The City of San Diego’s Development Services Department will offer a “Discretionary Project Professional Certification” (Pro-Cert) class for industry professionals on October 30th.  The class will allow participants to learn about discretionary development project application submittal requirements.  Attendees who complete the session will be deemed “Discretionary Pro-Cert Applicant” who will be allowed to bypass the initial completeness check for a discretionary project application.  To learn more or to register, please CLICK HERE.  

PORT BOARD CENSURES MEMBER; REPORT INDICATES THREATS AGAINST PORT ATTORNEY

The San Diego Unified Port Commission voted unanimously to censure one of its members, National City Representative Sandy Naranjo.  The censure capped a highly charged discussion with accusations of retribution, racism and gender bias.  The Port also released an independent report that was prepared detailing the case for censure.  In addition to the censure, Naranjo is now barred from serving in leadership positions — chair, vice chair, secretary — on the board, as well as prohibited from holding any internal or external committee assignments. The board did not, however, vote to block Naranjo from speaking alone with agency staffers, as was initially recommended by outside counsel.  Later in the week, the National City City Council took up the censure and chose to maintain her appointment to the Port Commission and send a letter in response to the action and related report.  To read the release report, please CLICK HERE.  

JUDGE RULES IN FAVOR OF SDG&E FRANCHISE AGREEMENT

San Diego Superior Court Judge Katherine Bacal ruled largely in favor of the City of San Diego’s decision to approve a franchise agreement with SDG&E.  The agreement, approved two years ago by the City Council, was sued by the Protect Our Communities Foundation which sought to invalidate the decision.  The Court did rule in favor of the litigants on one point of their lawsuit, which reduces the vote majority needed to renew the franchise agreement.  The agreement provides significant dollars to the City, including $80 million for the gas and electric franchise, $20 million to advance the city’s climate equity goals, as well as $10 million for various programs to help underserved communities.  The agreement was for 10 years with an automatic renewal of 10 years unless the council opposes renewal.  Under the court’s decision, that renewal threshold was changed from a 2/3rds vote of the council to a simple majority.

NEWSOM DECLINES TO DECLARE A STATE EMERGENCY OVER BORDER SEWAGE CRISIS

The Governor declined to declare a state of emergency over the border sewage crisis plaguing the southern San Diego coastline.  The Governor was being pressed by the 18 local cities in San Diego, as well as the San Diego County Board of Supervisors, among others to declare an emergency.  The Governor’s staff explained that this is a federal crisis, not a state crisis, but that they are working with federal officials on addressing the situation, including securing funding for the various projects that would help stem the sewage tide that continues to cross the US-Mexico border in record amounts.  The Governor did release a statement noting the commitment of federal officials to immediately commence upgrades to the international treatment plant located at the border.  To read that statement, please CLICK HERE.  

COUNTY WATER AUTHORITY SAYS 2024 WATER SUPPLY IS OK

The San Diego County Water Authority announced that it has ample supply to meet the region’s needs for 2024.  The announcement follows a bumper water year measured annually from October 1st to September 30th.  Water availability is always on people’s minds, including the City of San Diego’s.  For more information, please CLICK HERE.  

PROPOSAL TO CHANGE SD CITY ATTORNEY POWERS CAUSES HEATED DISCUSSION

The discussion about a proposed ballot measure to change the powers of the City Attorney got heated earlier this month as the Council President and current City Attorney sparred over advice given by the City Attorney’s office.  The proposed change would split the City Attorney’s office into two entities, one that would handle civil matters and provide advice to the council.  That position would be hired directly by the City Council.  The other would continue to be an elected office and handle criminal misdemeanor prosecutions.  The proposed change was tabled by the City Council’s Rules Committee on a 4-1 vote.  It may come back later to be considered for the 2024 election cycle.  To learn more, please CLICK HERE.   

CA’S NEW MENTAL HEALTH CARE COURT KICKS OFF

The state’s new mental health court has started accepting petitions this past Monday.  The alternative mental health CARE court program is designed to fast-track people with untreated issues into housing and medical care.  The program was championed by Mayor Todd Gloria as part of his efforts to address the homeless issues that are often tied to mental health issues.

CHULA VISTA MAYOR JOHN MCCANN DELIVERS FIRST STATE OF THE CITY ADDRESS

Earlier this month, Mayor John McCann of Chula Vista delivered his first “state of the city” address describing the next decade as Chula Vista’s opportunity to establish itself has the region’s economic driver.  He highlighted major projects from new housing to the bay front redo, which includes one of the largest hotel and convention projects to be built in the State of California.  He also noted the effort to bring a new university to the city. He focused on the new bay front hotel, noting that while hotel construction has dropped statewide, the new hotel will skew those numbers given its size.  To read more, please click HERE.